Maravi

Govt has provided stimulus package, claims Mutati

COMMENT - The minister is trying to 'create' a stimulus package by rewording existing policy. Who this is supposed to fool I don't know.

Govt has provided stimulus package, claims Mutati
Written by Chiwoyu Sinyangwe in Chirundu
Saturday, February 14, 2009 4:22:26 AM

COMMERCE minister Felix Mutati on Thursday claimed that the government has provided over K2.3 trillion as economic stimulus package for the country in this year’s budget.

Officiating at the opening of the Zanaco Plc branch in Chirundu, Mutati said the economic stimulus package was in line with initiatives being taken by some other countries to stimulate their economies in the wake of the current global financial crisis.

Mutati explained that while other countries were providing direct financing to stimulate their economies, Zambia’s package was entrenched in the incentives provided for in the national budget.

He said the stimulus package would cost the country in excess of K2 trillion.

“People are asking us; does your government put any economic stimulus package? The answer is yes,” said Mutati.

“The answer is yes. We have in the 2009 budget provided for tax rebates, tax relief in excess of K2 trillion. That in effect is our stimulus package. We have reduced Pay As You Earn (PAYE), by giving concessions to the mining sector so that they can continue to provide employment to our people. We are including the Multi Facility Economic Zones (MFEZ) in the incentives. This is all part of the economic stimulus packages. So, we are not sitting back but we are confronting the challenges and meeting them. “

And Zanaco managing director Mark Wiesssing said the opening of the 53rd branch at Chirundu was part of the bank’s aggressive expansion programme.

Wiesssing said the opening of the branch also allayed earlier fears that the bank would halt the expansion programme after it was taken over by Dutch financial giant, Rabobank Group.

He also disclosed that despite the current global economic predicament, Rabobank Group had continued to post very strong results for growth.

“As of last year, we have posted over 100 per cent profit before tax and K50 billion profit for the prior year. Our deposit base has grown to over K2.3 trillion making it the largest deposit base while shareholder equity stands at K250 billion which is way above the minimum requirement of the Bank of Zambia,” said Wiesssing.

Labels: FELIX MUTATI, GREAT DEPRESSION II, MARK WIESSING, RABOBANK

posted by MrK @ 4:22 AM