Zambia spent K6bn on debt servicing in October - Mwanakatwe

As at the end of September we had K14 billion worth of arrears and this is an area we want to ensure that we liquidate and we have in stock K54. 9 billion worth of Government treasury bills and bonds that was why government is going to the market to look for money especially from the banks.

ABOUT K6.1 billion has been spent on different debt servicing commitments in the month of October, Finance Minister Margret Mwanakatwe has said. In an interview, Ms Mwanakatwe said Government spent K1.5 billion on external debt service, K2.4 billion on personal emoluments, K1.1billion on grants and other payments and K1.1 billion on key programmes. Ms Mwanakatwe said under grants, Government spent close to K100 million on students’ loans and scholarships, while K1.7 million on Farmer Input Support Programme (FISP) to liquidate arrears and implement the E-voucher programme while K50 million was spent on food security pack. The minister said Government also spent K150 million on the ministry of Health for the procurement of drugs and K13. 7 million on liquidating arrears of ministries and spending agencies She said Government focused on liquidating arrears and ensured that key areas such as student loans, grants were paid so that it did not default on debt service. And Ms Mwanakatwe has since assured the nation that in 2019 Government would reduce on dependency of borrowing from the local market. She said Government would ensure that the private sector was not crowded out by making sure it played a leading role. “As at the end of September we had K14 billion worth of arrears and this is an area we want to ensure that we liquidate and we have in stock K54. 9 billion worth of Government treasury bills and bonds that was why government is going to the market to look for money especially from the banks,” said Ms Mwanakatwe. Meanwhile, Ms Mwanakatwe said Government would continue to work with the church to foster development. Ms Mwanakatwe said this when she donated construction materials at Mwambula United Church of Zambia congregation in Lusaka Multi-facility Zone area yesterday for a new church.