Zambian gov't urged to spend debt relief savings in infrastructure

A World Bank official has urged the Zambian government to spend debt relief savings in infrastructure and social sectors so as to further boost the economy and to benefit the ordinary people.

World Bank country representative Ohene Nyanin was cited by local media as saying although Zambia had attained debt relief completion point, there was need for the government to ensure it used the savings judiciously in order to reap the benefits.

"Debt relief was meant to leave the fiscal space that the government needed to be able to spend adequately for areas like health, education and for the infrastructure that is required to grow this economy to improve the lives of the ordinary Zambians," Nyanin was quoted by Monday's The Post as saying.

Through Heavily Indebted Poor Countries (HIPC) and the Multilateral Debt Relief Initiative (MDRI) Zambia has moved from an external debt of 7.2 billion U.S. dollars to only half a billion dollars.

"That is a very impressive thing because it releases a lot of money that Zambia wouldn't have otherwise used to pay debt for its development efforts," Nyanin said.

He also pledged the World Bank's assistance to the Zambian government with future debt management.

"We will continue to help the government through analytical and advisory services. We stand ready to help the government and we obviously continue to provide either resources or money transfers, " the official said.

Source: Xinhua