Q FM Africa's Modern Radio
Former Finance Minister Katele Kalumba has attributed the culture of loan default by Zambians to failure by banks to supervise loan portfolios properly.
Katele Kalumba
Dr. Kalumba says he does not think that people default on their loans because they do not have the capacity to repay loans.
In an interview with Qfm News, Dr. Kalumba says his observation is that banks are currently lending out money for political reasons and not economic reasons.
He says if banks had been lending purely for economic reasons, they would have been supervising loans in the manner the International Monetary Fund (IMF) does with countries.
Dr. Kalumba says this way, the excuse of nonperforming loan portfolios the banks are using to set high interest rates on borrowing would not arise.