GOVT URGED TO PRUDENTLY MANAGE ITS BORROWING FROM RETAIL BANKS

By Tinkerbel Mwila 

Economist Mathews Muyembe is calling on government to prudently manage its borrowing from retail banks as this has continued to deprive the private sector of resources meant for expansion of projects. 

In an interview with Phoenix News, Mr Muyembe is of the view that government`s continued borrowing from the banks is crowding out money meant for the private sector as most banks are lending money to government. 

data-contrast="none">Mr Muyembe has observed that currently, liquidity is low and that the private sector does not have market opportunities to sell or buy, hence the need for government to create a suitable environment with enough liquidity for the private sector. 

He has since called on the government to inject a large amount of liquidity into the economy through monetary policy which will help control the quantity of money available. 

PHOENIX NEWS 

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