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Zambia has to renegotiate, reschedule, refinance to bring debt levels down, HH

Filed under: Business,Latest News,Politics |
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United Party for National Development (UPND) president Hakainde Hichilema (HH) says the reason why Zambia is failing to pay back its debts is because the country borrowed for consumption and not to invest the money.

He says in the 2011 national budget the allocation for debt repayments was a paltry $226.9 million (8% of national budget) which was sustainable. He however, adds that in 2021, it was $2.2 billion (38% of national budget).

Meanwhile, according to HH, the only option for the country to find its feet again economically is to re-negotiate, reschedule and refinance for the country to come down to the 2011 levels.

He writes:

You may ask why we are so concerned about debt. The simple answer is; it has taken away a huge chunk of our national budget.

In the 2011 national budget the allocation for debt repayments was a paltry $226.9 million (8% of national budget). In 2021, it’s $2.2 billion (38% of national budget).

Because this money was wasted on consumption, this is the reason we cannot pay it back. The only option is to renegotiate, reschedule and refinance for us to come down to the 2011 levels.

The lenders are willing to adjust as long as they can TRUST the government, this is what we bring to the table.

Our preoccupation when we are in Government will be to arrest the deteriorating economic situation, and not arresting innocent political opponents.

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