ECONOMIST Bright Chizonde has warned that government’s failure to restructure its domestic debt could lead to the collapse of some private sector companies as a result of liquidity issues. He has proposed that to deal with the rising domestic debt, government should reduce expenditure to avoid the need for more borrowing. Recently, Minister of Finance and National Planning Dr Situmbeko Musokotwane disclosed that government had deliberately failed to restructure Zambia’s domestic debt to avoid a banking crisis. Commenting on these remarks in an interview, Saturday, Chizonde highlighted the potential negative impact of the rising domestic debt, including driving up interest rates. “Before talking about what the government can do to address the rising domestic debt, I think it’s critical for...
