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‘Malawi government not over-borrowing’

Minister of Finance Goodall Gondwe has said government is not borrowing too much.

Gondwe was reacting to what Dedza East MP Juliana Lunguzi said in her contribution to a debate on a loan authorisation Bill Gondwe tabled in Parliament on Tuesday.

“We are very far from saying we are over-borrowing. We borrow prudently, use it on things that will bring about economic growth,” Gondwe said.

The MPs were debating a bill in which government was seeking authorisation to borrow about K16 billion from the International Development Association.

Gondwe said the money is to be used to improve some sections of the M1 Road which form part of the North-South Corridor.

But Lunguzi, who in her contribution also said she also wished the road linking Salima and M1 Road, which passes through her Dedza East Constituency should also be considered in future projects, questioned the idea of borrowing.

The Bill was eventually passed.

According to Gondwe, government will repay the loan in a period of 40 years, with a grace period of 10 years.

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