YoungD
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- Dec 27, 2016
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Experts raise red flag as Tanzania's debt rises to $25b
Monday March 26 2018
Bank of Tanzania says increase in foreign debt was mainly on account of new borrowing largely to finance capital expenditure and stimulate the economy. FOTOSEARCH
In Summary
By VICTOR KAREGA
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Tanzania's debt stock has risen to Tsh57.964 trillion ($25.5 billion) as of January 2018, with the external debt standing at Tsh44 trillion ($19.4 billion) and domestic debt at Tsh13.964 trillion ($6.2 billion).
A report by the Bank of Tanzania (BoT) for February 2018 notes that the national debt rose 15.3 per cent from Tsh50 trillion ($22.1 billion) at the end of January 2016.
Domestic debt, which fell due for January 2018 payments, rose to Tsh679.8 billion ($300 million) from Tsh346.3 billion ($152.9 million) the preceding month.
Out of the debt that matured in January, a principal of Tsh563.4 billion ($248.8 million) was rolled over while interest amounting to Tsh116.4 billion ($51.3 million) was paid out.
The central bank says the cumulative debt that fell due by January was Tsh6.1 trillion ($2.7 billion), out of which Tsh5 trillion ($2.2 billion) was rolled over and the balance paid out.
According to BoT’s Monthly Economic Review for February, the increase in foreign debt was mainly on account of new borrowing largely to finance capital expenditure and stimulate the economy.
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But experts warn the government that it may have difficulty in repaying the debt in future, in the face of dwindling exports.
Treasury-bills and bonds issued for budget financing amounted to Tsh459.7 billion ($202.9 million), with bonds accounting for Tsh259.2 billion ($114.4 million). The cumulative government securities issuance during the year to January 2018 amounted to Tsh7.4 trillion ($3.2 billion).
The balance in goods account realised a deficit of $97.8 million from $76.7 million, while the services account realised a surplus of $93.9 million, compared with $98.9 million, owing to an increase in service payments.
Exports of goods and services grew to 26.9 per cent to $225.9 million in the year ending January 2018, helped by major export commodities such as cloves and seaweed.
Manufactured goods, which included re-exports, increased to $6.1 million from $1.5 million. Much of the increase resulted from exports of fish and fish products, particularly live lobsters and crabs.
My take: Tanzania is fcuk'd dryfry without lube.
Monday March 26 2018
Bank of Tanzania says increase in foreign debt was mainly on account of new borrowing largely to finance capital expenditure and stimulate the economy. FOTOSEARCH
In Summary
- BoT says increase in foreign debt was mainly on account of new borrowing largely to finance capital expenditure and stimulate the economy.
- But experts warn the government that it may have difficulty in repaying the debt in future, in the face of dwindling exports.
By VICTOR KAREGA
More by this Author
Tanzania's debt stock has risen to Tsh57.964 trillion ($25.5 billion) as of January 2018, with the external debt standing at Tsh44 trillion ($19.4 billion) and domestic debt at Tsh13.964 trillion ($6.2 billion).
A report by the Bank of Tanzania (BoT) for February 2018 notes that the national debt rose 15.3 per cent from Tsh50 trillion ($22.1 billion) at the end of January 2016.
Domestic debt, which fell due for January 2018 payments, rose to Tsh679.8 billion ($300 million) from Tsh346.3 billion ($152.9 million) the preceding month.
Out of the debt that matured in January, a principal of Tsh563.4 billion ($248.8 million) was rolled over while interest amounting to Tsh116.4 billion ($51.3 million) was paid out.
The central bank says the cumulative debt that fell due by January was Tsh6.1 trillion ($2.7 billion), out of which Tsh5 trillion ($2.2 billion) was rolled over and the balance paid out.
According to BoT’s Monthly Economic Review for February, the increase in foreign debt was mainly on account of new borrowing largely to finance capital expenditure and stimulate the economy.
Related Content
But experts warn the government that it may have difficulty in repaying the debt in future, in the face of dwindling exports.
Treasury-bills and bonds issued for budget financing amounted to Tsh459.7 billion ($202.9 million), with bonds accounting for Tsh259.2 billion ($114.4 million). The cumulative government securities issuance during the year to January 2018 amounted to Tsh7.4 trillion ($3.2 billion).
The balance in goods account realised a deficit of $97.8 million from $76.7 million, while the services account realised a surplus of $93.9 million, compared with $98.9 million, owing to an increase in service payments.
Exports of goods and services grew to 26.9 per cent to $225.9 million in the year ending January 2018, helped by major export commodities such as cloves and seaweed.
Manufactured goods, which included re-exports, increased to $6.1 million from $1.5 million. Much of the increase resulted from exports of fish and fish products, particularly live lobsters and crabs.
My take: Tanzania is fcuk'd dryfry without lube.