Q FM Africa's Modern Radio
Open Society Foundation is dismayed with what it has described as government’s insatiable appetite for borrowing.
Executive Obbious Chikombola says his organisation is left wondering as to whether the answer to the country’s fiscal quagmire rests entirely on the backbone of borrowing.
Mr Chisala says the effects of gross borrowing are not new to Zambia, stating that it was a s a result of borrowing that the mines were sold for a song due to pressure from the International Monetary Fund and international lenders.
He adds that it was due to this high gearing ratio that Structural adjustment programs were imposed on Zambia which in turn exacerbated the poverty rate in the towns and cities.
Mr Chisala says Open Society Foundation Challenges the government to tell the people of Zambia how they have used the $1.750 Billion Eurobond before they contract the $2 billion euro bond.
He notes that borrowing is no bad provided the money borrowed is channelled towards infrastructure development and capital projects such in the transport and energy sectors.
Mr Chisala says the concern is that $2 billion Eurobond issuance is being planned in response to the looming budget deficit of K20 billion.
He says the country Cannot afford to borrow for consumption, and has since challenges government what expenditure constitutes the K20 billion deficit.
Mr Chisala says his organisation will support the government only when they provide a detailed analysis of the expenditure to which they intend to channel the said Eurobond money.