Cabinet approves acquisition of US$200 million from World Bank

Felix Mutati – Finance Minister

The Government has paid K308.5 million of verified debt owed by various Ministries, Provinces, and Spending Agencies to Zesco, Zambia State Insurance Corporation [ZSIC], and Zamtel, of which, Zesco has been paid K172.6 million, ZSIC 91.9 million and Zamtel K44 million.

The funds paid to the three State-Owned-Enterprises through a debt swap mechanism have been ring-fenced to off-set some outstanding tax obligations to the Zambia Revenue Authority, in line with the government’s fiscal consolidation initiative.

Commenting on the development, Minister of Finance Felix Mutati says the initiative to activate a debt-swap with the three companies is in line with the government’s fiscal consolidation policy through which the dismantling of arrears is one of the strategies being used to inject liquidity in the market and stimulate private sector participation in the economy through growth and job creation activities.

The Minister has noted the positive performance of Zamtel over the last few months, adding that, “the government will continue to ensure that state-owned-companies are helped to commercially stabilize by cleaning up their balance sheet so that they compete favourably; grow their businesses; and, perform in a manner that is worth the money for which the public pays for the goods and services which they produce.

Meanwhile, Mr. Mutati has disclosed that Cabinet on Wednesday approved the acquisition of US$200 million from the World Bank for feeder roads works in all parts of the country.

This is contained in a statement issued to QTV News by Ministry of Finance Head of Public Relations Chileshe Kandeta.