NKULUKUSA DISMISSES CLAIMS UPND HAS OVER-BORROWED, SAYS DEBT UP BY ONLY $4.3BN
By: Thomas Afroman Mwale
Secretary to the Treasury Felix Nkulukusa has disputed suggestions that the ruling United Party for National Development (UPND) has contracted excessive debt since 2021, stating that the country’s total debt stock has only increased by 4.3 billion dollars, from 24.6 billion dollars to 28.9 billion dollars during the period.
Mr Nkulukusa said the increase is significantly lower compared to the rate at which debt grew under the Patriotic Front (PF) administration.
He explained that Zambia’s total public debt stood at 4.33 billion dollars in 2011 and rose to 10.1 billion dollars by 2015 adding that debt further increased from 10.1 billion dollars in 2015 to 24.6 billion dollars in 2021, representing a sharp rise during that period.
Mr Nkulukusa revealed that between 2011 and 2015, Zambia’s debt grew by 5.77 billion dollars, while between 2015 and 2021 it increased by about 14.5 billion dollars.
Speaking when he featured on ZNBC’s Government Forum, Mr Nkulukusa said it is not true that the UPND government has grown the debt portfolio unsustainably revealing that the country’s current debt remains sustainable, with the majority of it being concessional loans.
He disclosed that of the 4.3 billion dollars contracted since 2021, 1.7 billion dollars was obtained from the International Monetary Fund (IMF) at zero interest, with a five-year grace period and a 10-year repayment period.
Mr Nkulukusa further explained that the remaining loans were sourced from institutions such as the World Bank and the African Development Bank, as well as other lenders offering concessional interest rates of about 2.6 percent.
He said Zambia is on the right economic trajectory, adding that debt is not necessarily bad if it is contracted for investment and national development.
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