Caritas advises govt to remit part of revenue into sinking fund

Caritas Zambia has advised government to remit a percentage of the country’s revenue into the sinking fund created to service the Eurobonds.

Caritas Zambia Programme Specialist for Economic and Social accountability,Edmond Kangamungazi says the future repayment of the country’s current debts will create a strain on domestic revenues, thus the need to continue servicing the debt little by little.

Mr. Kangamungazi says failure to save through the sinking fund, the government’s capacity to provide social services to the people will be a challenge as the revenues will be diverted to loan repayment.

He says there is need to ensure that money is saved and when it is time to start repaying the loans, no sector is affected and the economy continues to run normal.

Mr. Kangamungazi further states that government must consider a number of policies in order to increase domestic revenue.