Government halts the contraction of all new non-concessional loans

CABINET has indefinitely postponed the contraction of all new non-concessional loans in view of the prevailing economic challenges.
Finance Minister Margaret Mwanakatwe has revealed that at the urgent Cabinet Meeting which was held on Monday, Cabinet decided to take on measures to restore the macro-economic stability, restore debt sustainability.
Mwanakatwe said cabinet also directed that no Ministry, Province, or Spending Agency should contract goods and services without availability of funds even if it is budgeted for.
She said it was further noted the impact of the increase in debt service payments on the budget and the need to reduce this expenditure, the build-up of domestic arrears and the tightening of liquidity on the domestic market.
She said cabinet further directed her to present at its next sitting a list of project loans to be considered for slowing down, postponing and Cancellation.
She said the cabinet resolved to implement some fiscal reforms by slowing down the level of the deficit to ensure that liquidity conditions improve and spur growth.
She said cabinet directed the hastening of legal reforms such as the enactment of a new Public Procurement law to ensure value for money and that Ministries should improve on contract management.
And Mwanakatwe said Government has also cancelled some signed but undisbursed loans in order to reduce debt.

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News Source: Mwebantu

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