By Ellen Hambuba
Government says it has reduced the debt burden after securing major relief from international creditors and shifting to more affordable borrowing options.
Secretary to the Treasury Felix Nkulukusa revealed that annual debt servicing obligations have dropped from about 2.3 billion US dollars to roughly 900 million dollars following successful debt restructuring agreements.
Mr. Nkulukusa explained that the restructuring process has eased pressure on public finances by lowering repayment demands and extending repayment periods, allowing government to better manage its financial commitments.
Speaking on ZNBC’s Government Forum, Mr. Nkulukusa said the reduction in debt servicing has created critical fiscal space, enabling authorities to redirect more than one billion dollars previously spent on repayments toward development programmes and essential public services.
He further noted that government has changed its borrowing strategy by moving away from expensive commercial loans to concessional financing from cooperating partners.
Some of the new loans attract zero interest rates, while others carry minimal charges below three percent, compared to previous commercial debts that carried double-digit interest rates.
