MTONGA OPPOSES DEBT SWAP WITHOUT FINANCIAL EDUCATION
UPND member George Mtonga has opposed efforts to introduce a debt swap for civil servants, arguing that debt relief without financial education would only perpetuate the borrowing cycle.
Mr Mtonga said civil servants were borrowing beyond their means and would likely take on new loans once debt relief created additional space on their payslips.
He argued that government should combine any relief measures with adequate financial education to help workers understand the long-term consequences of excessive borrowing.
“A debt swap strategy does not address the fundamental fact that civil servants are borrowing beyond their means,” Mr Mtonga said.
He said providing relief without addressing the underlying financial behaviour would result in civil servants returning to the same difficulties within a few years.
“I currently do not support efforts for a debt swap until we are assured that there are enough educational tools to avoid these things for civil servants,” he said
Mr Mtonga maintained that sustainable debt management required education alongside any proposed relief programme.