Debt stock has affected IMF deal – EAZ

EAZ President Chrispin Mphuka

The Economics Association of Zambia (EAZ) says the country’s increasing debt stock could be the hindrance to government sealing a deal for a financial package with the International Monetary (IMF).

EAZ president Chrispin Mphuka says his association has observed that Zambia’s debt is growing so fast.

Dr. Mphuka says the increasing debt is unsettling everyone that the Country might borrow to unsustainable levels and fail to meet its obligations.

In an interview with Q-News by telephone, Dr. Mphuka says the EAZ has also observed that debt has already become a big problem on the national budget.

Dr. Mphuka says this is because debt is taking a bigger proportion of the national budget.

He says government therefore needs to slowdown on debt contraction as it has become a burden on the economy.

Dr. Mphuka states that it is unsustainable for the government to continue borrowing.