JCTR does not think Zambia should continue getting loans

The Jesuit Centre for Theological Reflections (JCTR) says the country cannot afford to continue contracting more loans given the fact that the economy is going through a rough time.

Leonard Chiti

JCTR Director Fr. Leonard Chiti says the country already owes the international community a lot of money which it is struggling to pay back
Reacting to the approval by Cabinet of a US$275 million loan from the Industrial and Commercial Bank of China for the construction of 2,350 housing units for security wings under the ministry of home affairs, Fr Chiti says it is not necessary to contract more loans.

He says government should think of other sources of funding to raise money for the construction of houses for the security wings.

Fr. Chiti says the country should not forget that it will pay more for the loans it is contracting; stating that the money spent to pay back loans can be used to improve other needy sectors of the economy.

Fr Chiti says it is sad that borrowing has become the first option each time there is something that needs to be done in the country.

He states that the country should not get used to borrowing, but should strive to live within its means and only borrow when necessary.

Fr Chiti however points out that the only consolation is that once the President signs the new constitution bill into, any new loan will have to be scrutinized by Parliament and hence it will take much scrutiny in approving loans.