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Saturday, 13 December 2008

Borrowing out of trouble?

ZNBC News reported earlier in the week that "Government has put in place sufficient measures to mitigate the impact of the global financial crisis". In line with the IMF recommendations, the government will "deliberately focus on under-pinning infrastructure investment in all sectors of the economy". Nothing wrong with focusing on infrastructure investment. What i found most baffling was the revelation "that government has secured credit facility agreements with multi-lateral financial institutions as a way to cushion the impact of the global financial hiccup". If the government's policy is to drive Zambia into deeper external indebtedness that policy should be transparent. As I noted in the blog Zambia's rising external debt.. the absence of national framework on debt is worrying, especially now that government is signalling greater external borrowing.

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