Speaking during the Africa Export-Import Bank 22 Annual General meeting of shareholders at Hotel InterContinental in Lusaka on Thursday, Dr Kalyalya feared that there would be further implications from the current decline in government revenue.
“We see actually that the revenues for the government have been coming down. Now that has other implications; we have seen that with expenditures not also falling at the same rate as revenues are falling, you find that the government is going to need some finances,” he said. “So the recourse payment is made through the financial system for support notably in government facilities and also that has pushed the yield on these items. So you find that interest rates are also going up because of recourse by government to borrowing from the financial market to cushion its expenditure needs.”
Dr Kalyalya said the government’s predicament, which started as an is isolated matter, had become a much bigger problems
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