‘Govt’s appetite for borrowing distorts economy’

Wed, 03 May 2017 10:09:00 +0000

By BUUMBA CHIMBULU

GOVERNMENT should reduce its appetite for domestic borrowing by offering high rates on Treasury bills as it is distorting the financial market, says the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW).

ZUFIAW president Ackim Mweemba observed that interest rates will not come down as long as Government continued offering high rates on Treasury bills.

“We call upon Government to reduce its appetite for domestic borrowing for it is distorting the market. The Government is crowding out the private sector, hence the negative effect on the economy.

“We urge Government to stick to the effective implementation of our economic recovery plan, Zambia Plus, for it does have the potential of restoring economic growth,” he said.

Mr Mweemba, in a speech to mark Labour Day, also urged Government to ensure workers were protected as it sought an International Monetary Fund (IMF) economic bailout.

He said it was important for Government as it seeks the IMF programme to embrace the “look east” policy and seek more flexible financial arrangements with China and other emerging Asian countries.

“We also want to caution Government that implementing the IMF economic policies with no regard or concern for workers’ rights, discrimination against women, youths, protection of jobs, inequality, unemployment and high poverty levels, will not be accepted by workers.

“Workers have endured a lot of sacrifice and suffering due to worsening economic situation and it cannot be allowed to deteriorate any further,” he said.