All employees of quasi- Government institutions may soon be eligible to access loans from the Public Service Microfinance Company. The Government financial lending institution offers loans to civil servants at 5 percent interest subsidised by tax payers. CEO Mubanga Mwiko says that Government wants to shield civil servants and those in quasi -Government institutions from unfavourable lending rates. It has been allocated K100m budget for 2014. That is already on top of millions money dished out in 2013. (Source : ZNBC) This is precious money being wasted. Why should poor hard working poor Zambians subsidise borrowing by civil servants? We should be using this money and spending it on improving health care and other priorities. It is also poorly constructed. Who lends money 5% when they are borrowing from domestic and foreign at an historic high? Who lends at 5% when inflation is 8%? What is actually the point of lending civil servants at 5% with current high market rates? What is to prevent a civil servant borrowing the money and then lending it to someone else at a profit? It is the most foolish and financially reckless policy I have ever come across! But may be someone will give a worse example! What is the SOLUTION? Scrap it! And arrest the man who came up with it for financial genocide! His poor decisions are costing lives!
Posted on: Fri, 18 Apr 2014 17:49:38 +0000
Trending Topics
Recently Viewed Topics
© 2015