Minister optimistic of debt sustainability

Minister of Finance and Economic Affairs Simplex Chithyola Banda says government is committed to restore public debt sustainability by among other things, negotiating with creditors for debt restructuring.

In his response to contributions by members of Parliament to the 2023-2024 Mid-Year Budget Review Statement he delivered on November 20 2023, the minister said there is need to invest in productive programmes that will enable the country to enhance its capacity to repay debt in few years to come.

Chithyola Banda said the focus is to ensure that foreign financing is largely through grants while borrowing is on concessional terms and contracted for projects with higher prospects on returns.

He said: “On the domestic market, the House may recall that we are implementing the local currency infrastructure bond programme that ring fences the loan proceeds for specific flagship projects.

“Overall, government is in an overdrive to achieve fiscal adjustment by enhancing domestic revenue mobilisation and expenditure re-prioritisation.”

The minister also informed the House that government is geared to implement long sustainable strategies to build foreign exchange reserves, adding that a number of measures are being considered to ensure rebuilding back a resilient economy.

Earlier in his contribution,Thyolo Central legislator Ben Phiri underrated the impact of Extended Credit Facility to the economy, but Chithyola Banda explained that as much as ECF unlocks donations, its impact is far reaching in as far as private sector investment is concerned.