Malawi govt K860bn debt trap worrisome — MP Chimwendo Banda

Chairperson of the Parliamentrat Committee on Social and Community Affairs, Richard Chimwendo-Banda has expressed concern with the K860 billion domestic debt by government, saying it is as worrisome.

Chimwendo-Banda said the demostics debt  is a recipe for trouble, saying there us need for government to reduce domestic borrowing.

“The figure K860 billion is very worrisome,” said Chimwendo- Banda who is also a member of main opposition Malawi Congress Party (MCP).

He said the figure is “alarming.”

Said Chimwendo-Banda: “ We need to change our borrowinvg. It should not be for consumption only, we will make sure that when we got to parliament we advocate reasonable borrowing.”

He said Malawi should be following the debt management strategy where Reserve Bank of Malawi controls its public debt.

Meanwhile,  Malawi Economic Justice Network (Mejn) executive director Dalitso Kubalasa has persuaded members of parliament  to consider passing grants and loan authorisation Bills in the National Assembly that are of national importance and qualify for the intention they have been borrowed for.

He some of the huge amount of money Malawi borrow are not worth it.

“They are not priorities  and the problem is that we onlyt borrow for consumption and not investment,” he said.

Kubalasa argued that the accrued debt will continue to attract interest over and above the new additional domestic borrowing being accumulated in this fiscal year for consumption and not necessarily production.

Domestically, government borrows from the public by issuing Treasury Bills (TBs) and bonds.

 

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