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BARCLAYS HAPPY WITH DEBT DISMANTLING

BARCLAYS Bank Zambia says it is happy with the K2 billion allocated towards the dismantling of local debts in the proposed 2020 National Budget.

Speaking during a live special interview programme on the Zambia National Broadcasting Corporation (ZNBC) television, Barclays Bank Director Mizinga Melu said the allocated K2 billion will boost liquidity in the economy thereby reducing on non-performing loan backlog.

“There are a number of contractors that have not been paid for a while, with local debt dismantling it will help pump liquidity  back into he market by doing that you will see that people start servicing their loans and non-performing loans begin going down,” she said.

Melu said the dismantling of external debts was also good but urged government to slow down on contracting new loans.

Melu added that government through Finance Minister Bwalya Ngandu was doing well by focusing and allocating resources towards the growth sectors of the economy.

She said this was a balancing act and that for debt issues, there was already commitment as government could not just halt the payments because there were consequences.

She stated that what government needed to was look at levels in terms of the amounts, but that where government was indicating that anything below 80 per cent would not be executed, was good for the economy.