GOVERNMENT has introduced a K10 billion medium-term refinancing facility to support various players in the economy in order to improve liquidity and mitigate the effects of Covid-19 and strengthen financial sector resilience as well as promote sector-led economic growth.
President Lungu said the government has issued also issued the K8 billion Covid-19 bond as an economic stimulus package to support the private sector and improve liquidity in the economy.
“Despite the economic challenges that we are experiencing, a total of K1.1 billion has so far been released against the 2020 budget of K2.1 billion, my government remains committed to dismantling all outstanding domestic arrears”, he stated.
“During the period 2016 to 2019, the economy remained resilient, registering positive growth averaging 3.2 per cent. In 2020, the economic growth rate is projected to decline to negative 4.2 percent”, he said.
The global economy is projected to grow at a negative 4.9 percent by the end of 2020 compared to the positive growth rate of 3.2 percent registered in 2019, he said.
“This is mainly attributed to the Covid-19 pandemic which has led to disruptions in the supply and value chains, fall in international commodity prices, reduced exports, low investments and liquidity constraints”, he added.
It was during the opening of the 5th session of the 12th National Assembly when he said the country is exporting less of both traditional and non-traditional commodities, which has led to reduced revenues for government and profits for businesses as a reduction in investments and job creation.