Government through Ministry of Information, Tourism and Civic Education has disclosed that the current regime has inherited a domestic debt stock pegged at K340 billion against the foreign debt burden estimated at US$1.2 billion from former ruling People’s Party (PP) era.
This has been disclosed in a statement issued few minutes ago by Ministry of Information aiming at updating Malawians on the reforms currently being taken by President Professor Author Peter Mutharika in the Civil Service Sector.
According to the statement, the reforms currently underway aim at ensuring efficiency and effectiveness in managing government affairs, including attending to the need of eliminating wastage and using resources prudently.
“The current administration has inherited a domestic debt stock standing at around K340 billion, while the foreign debt burden is estimated at US$1.2 billion.
“In terms of servicing this debt, government will be required to be paying at least K92 billion per annum to service the domestic debt (of K340 billion)”, reads in part the statement.
Adds the statement: “while the government will be paying around K10 million dollars per annum to service the foreign debt stock (of US$1.2 billion). This is clearly Unsustainable and illustrates the urgent need to introduce the radical reforms that will assist in the task of eliminating wastage and at the same time realigning national priorities to ensure that borrowing should only be for purposes of productive activities”.