ECONOMIST CALLS FOR STRICT LAWS TO GUARD AGAINST FUTURE DEBT CRISIS

Economist Kelvin Chisanga says the government must strive to ensure that all lawful procedures are applied to control future borrowing for the betterment of the country while avoiding another debt disaster.

Mr. Chisanga notes that the current regime has shown commitment to ensuring sustainable borrowing especially with the passing of the law that restrains the executive from borrowing without the approval and supervision of Parliament.

He says it is encouraging to see the continuous pronouncements by the Minister of Finance, Dr. Situmbeko Muskotwane, that the government will strictly follow the lawful procedure when dealing with debt.

Mr. Chisanga is hopeful that the new law will set strict limits on public borrowing toward enhanced transparency, to avoid another debt distress following the ongoing restructuring process.

Under the public debt management bill, Zambian lawmakers will need to approve an annual borrowing plan prepared by a new debt management office and the total outstanding government borrowing will not be allowed to exceed 65 percent of the previous year’s Gross Domestic Product-GDP.