Increased foreign borrowing limit worries JCTR

JCTR Director Leonard Chiti - Left
JCTR Director Leonard Chiti - Left
The Jesuit Centre for Theological Reflection (JCTR) has warned that the country runs the risk of falling back into the debt trap following the decision by Parliament to increase government’s borrowing limit.

JCTR Director Fr Leonard Chiti has tells Qfm that Zambians are not against borrowing by government but that what they are against is irresponsible borrowing.

Fr. Chiti says if the country needs extra resources and finances for development purposes there is nothing wrong, but that what is wrong is to borrow with hidden agendas.

He adds that government should always explain to the people the need to borrow and the use for the money being borrowed, stating that borrowing is a threat to the country’s future.

Fr. Chiti says government should also be in a position to ascertain the country’s capacity to pay back the debts being acquired and be mindful of the future consequences of borrowing.

Fr. Chiti has further urged the government to be transparent in their borrowing and make sure that what is being borrowed is used for the intended purposes.

Parliament on Wednesday approved a proposal to allow government to increase borrowing from K20 billion to K35 billion.