UNDERSTANDING THE GOVERNMENT ANNOUNCED DEBT SWAP
The government of the Republic of Zambia will carry out a debt swap to mitigate the financial burdens of its civil servants. The program was due to be implemented last month end, but unfortunately, four provinces did not submit their data on time.
BUT WHAT IS A DEBT SWAP?
A debt swap is basically an exchange of debts between the govt and money lenders.
HOW WILL DEBT SWAP WORKS
If a civil servant owes a lending institution k20, 000, but this person is only owed a k10, 000 by government in Settling in allowances and other personal emoluments, the government will pay off the whole k20,000 to the lending institution. This means that this civil servant now owes the govt a k10,000. The govt will now start recovering this k10, 000 from the concerned Civil Servant at a minimum recovery amount of k200 per month until the whole 10 pin is fully recovered. Others without loans but govt owes them personal emoluments,govt will directly pay off.
And those without loans and without any personal emoluments from govt,your status quo.You are not entitled to anything.