Delays in debt restructuring stressing out Kwacha
According to finance minister SITUMBEKO MUSOKOTWANE, the Kwacha is under pressure due to the drawn-out debt restructuring negotiations.
According to Dr. MUSOKOTWANE, the protracted negotiation process has caused some persons who are intended to buy government bonds to cling onto them.
Dr. MUSOKOTWANE indicated that due to the uncertainty surrounding the debt restructuring process, steps are being put in place to stabilize the Kwacha as he spoke to Zambians electronically this morning on the Ministry of Finance Facebook and Zoom accounts.
The National Pension Plan Authority’s funding of the Lusaka-Ndola dual carriageway, according to the Finance Minister, is not unusual given the prevalence of local banks and other institutions lending to international businesses.
According to Dr. MUSOKOTWANE, many multinational companies doing business in Zambia obtain funding locally, which benefits local financial institutions by increasing business and safeguarding jobs.
He claimed that NAPSA is merely one of many lenders for the project and that it is OK for it to give funding for an enormous Zambian project.