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TANZANIA’S EXTERNAL DEBT AMOUNTS TO $19,418.2 MILLION
Posted 2018-03-27 by Corporate Digest
Tanzania’s external debt stock, comprising public and private sector debt, amounted to $19,418.2 million at the end of January 2018,...
Tanzania’s external debt stock, comprising public and private sector debt, amounted to $19,418.2 million at the end of January 2018, according to Bank of Tanzania monthly economic review for February 2018.
The debt stock represents an increase of $ 67.7 million from December 2017 and $ 2,056.6 milion from January 2017. The increase was mainly on account of new disbursements.
According to BoT, the central government debt accounted for the largest share of the debt stock at 78.8 percent, followed by private sector by 20.0 percent.
The composition of external debt in terms of creditor category remained almost unchanged from the previous month and corresponding period in 2017, where debt owed to multilateral institutions accounted for the largest share followed by commercial debt.
In terms of debt flow, disbursements received in January 2018 amounted to $ 46.6 million, all of which in favour of the central government.
Meanwhile, cumulative disburdenment of funds during the year to January 2018 was $
1,775.6 million, of which $ 1,447.3 million was received by the central government and the balance by the private sector.
As regard to debt service, about $ 200 million was paid out in January 2018, while cumulative debt service in the year ending January 2018 was USD 1,058.3 million, out of which USD 659.6 million was paid by the central government.
TANZANIA’S EXTERNAL DEBT AMOUNTS TO $19,418.2 MILLION - Corporate Digest
We are stable on the debt frontJPM: At 50.9trl/-, it is 33.5 pc against GDP, below international sustainability levels
TANZANIA’s national debt which currently stands at 50.9trl/- as of January this year is still maintainable at 33.5 per cent against the country’s Gross Domestic Product (GDP), and remains below international sustainability levels, President John Magufuli, reiterated yesterday.
What is more, the Head of State explained further that the country boasts of foreign reserves amounting to 5 billion US dollars, which is sufficient to purchase goods and services for six months, above the convergence criteria agreed in the East African Community (EAC) at 4.5 months.
“Our debt is still sustainable and we can even borrow more for development projects; there are some nations, some of which are branded first world countries, whose national debts are 200 per cent more compared to their GDPs,” Dr Magufuli explained, adding: ” It is not bad to borrow for development projects.
In fact, some of the financial institutions which used to lend us funds at 7 per cent are now settling for less than 3 per cent. Our negotiations muscle has significantly improved.” President Magufuli made the remarks in Dar e Salaam yesterday, after the Controller and Auditor General (CAG), Prof Mussa Assad, expressed concern over the trend of rising national debt which stood at 46trl/- as of June 30, 2017.
This was during an event at the State House where the CAG presented annual audited reports for central and local governments, public institutions, development projects and special audits for financial year 2016/2017.Dr Magufuli assured the CAG that Tanzania’s debt level was still manageable, meaning that the country could even borrow more from local and international lenders. Available statistics indicate that at the end of the second quarter of last year, the United States of America (USA)’s public debtto- GDP ratio was at 103.8 per cent while the level of public debt in Japan 2013 was 243.2 per cent against the GDP.
The Bretton Woods institute indicated in the report that during the period under review, China was faring well at just 22.4 per cent while in India it was at 66.7 per cent. Others are Germany (89.1 per cent) United Kingdom (98.2 per cent) and France and Italy (135.5 per cent). In a related development, Dr Magufuli asked Chief Justice Prof Ibrahim Juma and Principal Judge Ferdinand Wambali to spearhead the fast-tracking settlement of taxrelated cases worth about 4.4trl/- which remained unsolved in courts of law.
“This is a lot of money; please chart out a mechanism for speeding up the hearing of the cases so that the government can gain its fair share of revenues. We really need these funds for development projects and settling debts,” he stressed. Dr Magufuli was upbeat that the government was in a position to collect adequate revenues to undertake all development projects which have been earmarked, including the standard gauge railway, Stieglers Gorge hydro power plant and purchasing new planes for Air Tanzania Limited (ATCL).
At the same occasion, the Chairperson of the parliamentary Public Investment Committee (PIC), Dr Raphael Chegeni, assured President Magufuli that revenues from public entities would hit one trillion shillings this year from 885.5bn/- recorded during the last financial year. Dr Chegeni appealed to the government to appoint executives in some public institutions where most of their officials and board chairpersons were in acting positions and thus unable to make crucial decisions.
We are stable on the debt frontJPM: At 50.9trl/-, it is 33.5 pc against GDP, below international sustainability levels
Magufuli says Tanzania will continue borrowing despite high debt concerns
THURSDAY, MARCH 29, 2018 12:06
TANZANIA'S PRESIDENT JOHN MAGUFULI. FILE PHOTO | NMG
Tanzania will keep borrowing to finance its mega infrastructure projects, President John Magufuli has declared, dismissing arguments that the national debt would soon be unmanageable.
“Tanzania still has room for further borrowing…What matters are the projects into which we invest the borrowed money,” Dr Magufuli said.
He was responding to some issues raised by the Controller and Auditor General (CAG) Prof Mussa Assad who cautioned that the skyrocketing national debt would soon be out of hand.
Presenting the audit report for the 2016/17 financial year, Prof Assad said the liability – which stood at TSh41 trillion (KSh1.8 trillion) during the 2015/16 financial year - rose to TSh46 trillion (KSh2 trillion) as of 2016/17 financial year.
This, he said, was raising doubts that the debt was increasing speedily and that if left unchecked, it would see Tanzania plunging into a debt stress.
But in a rejoinder, the head of state said Tanzania’s debt, measured by all sustainability factors, remained very sustainable and that the country still had room for further borrowing.
“I know of countries which have debts of more than three times of our gross domestic product (GDP),” he said, insisting that the most important thing is the management of the borrowed money and specific projects into which the money is injected.
Prof Delfin Rwegasira of the University of Dar es Salaam shared President Magufuli’s sentiments, insisting that the national debt was still sustainable.
READ: Tanzania to fund its own projects
ALSO READ: OMONDI: Endless Kenya, TZ trade pacts reveal worrying inertia
Debt sustainability
He said the sustainability of the national debt was being analysed by the International Monetary Fund (IMF) in close cooperation with the Bank of Tanzania (BoT) and the ministry of Finance and Planning through the Debt Sustainability Analysis (DSA).
“As far as I know the latest figures that we have from the IMF are that Tanzania’s debt is very sustainable and the President was right,” Prof Rwegasira told The Citizen by phone. Some of the factors being used in the DSA include the debt as a percentage of the country’s GDP and the country’s ability to repay the loan.
The IMF is expected to conduct another DSA for Tanzania this year, but a similar exercise, conducted in 2016, showed that Tanzania’s risk of debt distress was low compared to benchmark level of 56 per cent of GDP.
The Finance and Planning minister, Dr Phillip Mpango said last November that Tanzania’s debt was barely 31.2 per cent of the country’s GDP as of July 2017.
Speaking on Wednesday President Magufuli said since the borrowed money was being invested in construction of mega infrastructure projects like standard gauge railway line and electricity generation like the Stiegler’s Gorge, it would only result into boosting the country’s ability to repay.
“In fact, some lenders are now offering even better terms….They have started coming back after realising that we are serious about implementing the projects with our own funds,” said Dr Magufuli.
He said the country already had enough funds for the Standard Gauge Railway line and the Stiegler’s Gorge projects and that the loans being entered into will only boost the available resources.
We'll still borrow despite debt concerns: Magufuli
Posted 2018-03-27 by Corporate Digest
Tanzania’s external debt stock, comprising public and private sector debt, amounted to $19,418.2 million at the end of January 2018,...
Tanzania’s external debt stock, comprising public and private sector debt, amounted to $19,418.2 million at the end of January 2018, according to Bank of Tanzania monthly economic review for February 2018.
The debt stock represents an increase of $ 67.7 million from December 2017 and $ 2,056.6 milion from January 2017. The increase was mainly on account of new disbursements.
According to BoT, the central government debt accounted for the largest share of the debt stock at 78.8 percent, followed by private sector by 20.0 percent.
The composition of external debt in terms of creditor category remained almost unchanged from the previous month and corresponding period in 2017, where debt owed to multilateral institutions accounted for the largest share followed by commercial debt.
In terms of debt flow, disbursements received in January 2018 amounted to $ 46.6 million, all of which in favour of the central government.
Meanwhile, cumulative disburdenment of funds during the year to January 2018 was $
1,775.6 million, of which $ 1,447.3 million was received by the central government and the balance by the private sector.
As regard to debt service, about $ 200 million was paid out in January 2018, while cumulative debt service in the year ending January 2018 was USD 1,058.3 million, out of which USD 659.6 million was paid by the central government.
TANZANIA’S EXTERNAL DEBT AMOUNTS TO $19,418.2 MILLION - Corporate Digest
We are stable on the debt frontJPM: At 50.9trl/-, it is 33.5 pc against GDP, below international sustainability levels
TANZANIA’s national debt which currently stands at 50.9trl/- as of January this year is still maintainable at 33.5 per cent against the country’s Gross Domestic Product (GDP), and remains below international sustainability levels, President John Magufuli, reiterated yesterday.
What is more, the Head of State explained further that the country boasts of foreign reserves amounting to 5 billion US dollars, which is sufficient to purchase goods and services for six months, above the convergence criteria agreed in the East African Community (EAC) at 4.5 months.
“Our debt is still sustainable and we can even borrow more for development projects; there are some nations, some of which are branded first world countries, whose national debts are 200 per cent more compared to their GDPs,” Dr Magufuli explained, adding: ” It is not bad to borrow for development projects.
In fact, some of the financial institutions which used to lend us funds at 7 per cent are now settling for less than 3 per cent. Our negotiations muscle has significantly improved.” President Magufuli made the remarks in Dar e Salaam yesterday, after the Controller and Auditor General (CAG), Prof Mussa Assad, expressed concern over the trend of rising national debt which stood at 46trl/- as of June 30, 2017.
This was during an event at the State House where the CAG presented annual audited reports for central and local governments, public institutions, development projects and special audits for financial year 2016/2017.Dr Magufuli assured the CAG that Tanzania’s debt level was still manageable, meaning that the country could even borrow more from local and international lenders. Available statistics indicate that at the end of the second quarter of last year, the United States of America (USA)’s public debtto- GDP ratio was at 103.8 per cent while the level of public debt in Japan 2013 was 243.2 per cent against the GDP.
The Bretton Woods institute indicated in the report that during the period under review, China was faring well at just 22.4 per cent while in India it was at 66.7 per cent. Others are Germany (89.1 per cent) United Kingdom (98.2 per cent) and France and Italy (135.5 per cent). In a related development, Dr Magufuli asked Chief Justice Prof Ibrahim Juma and Principal Judge Ferdinand Wambali to spearhead the fast-tracking settlement of taxrelated cases worth about 4.4trl/- which remained unsolved in courts of law.
“This is a lot of money; please chart out a mechanism for speeding up the hearing of the cases so that the government can gain its fair share of revenues. We really need these funds for development projects and settling debts,” he stressed. Dr Magufuli was upbeat that the government was in a position to collect adequate revenues to undertake all development projects which have been earmarked, including the standard gauge railway, Stieglers Gorge hydro power plant and purchasing new planes for Air Tanzania Limited (ATCL).
At the same occasion, the Chairperson of the parliamentary Public Investment Committee (PIC), Dr Raphael Chegeni, assured President Magufuli that revenues from public entities would hit one trillion shillings this year from 885.5bn/- recorded during the last financial year. Dr Chegeni appealed to the government to appoint executives in some public institutions where most of their officials and board chairpersons were in acting positions and thus unable to make crucial decisions.
We are stable on the debt frontJPM: At 50.9trl/-, it is 33.5 pc against GDP, below international sustainability levels
Magufuli says Tanzania will continue borrowing despite high debt concerns
THURSDAY, MARCH 29, 2018 12:06
TANZANIA'S PRESIDENT JOHN MAGUFULI. FILE PHOTO | NMG
Tanzania will keep borrowing to finance its mega infrastructure projects, President John Magufuli has declared, dismissing arguments that the national debt would soon be unmanageable.
“Tanzania still has room for further borrowing…What matters are the projects into which we invest the borrowed money,” Dr Magufuli said.
He was responding to some issues raised by the Controller and Auditor General (CAG) Prof Mussa Assad who cautioned that the skyrocketing national debt would soon be out of hand.
Presenting the audit report for the 2016/17 financial year, Prof Assad said the liability – which stood at TSh41 trillion (KSh1.8 trillion) during the 2015/16 financial year - rose to TSh46 trillion (KSh2 trillion) as of 2016/17 financial year.
This, he said, was raising doubts that the debt was increasing speedily and that if left unchecked, it would see Tanzania plunging into a debt stress.
But in a rejoinder, the head of state said Tanzania’s debt, measured by all sustainability factors, remained very sustainable and that the country still had room for further borrowing.
“I know of countries which have debts of more than three times of our gross domestic product (GDP),” he said, insisting that the most important thing is the management of the borrowed money and specific projects into which the money is injected.
Prof Delfin Rwegasira of the University of Dar es Salaam shared President Magufuli’s sentiments, insisting that the national debt was still sustainable.
READ: Tanzania to fund its own projects
ALSO READ: OMONDI: Endless Kenya, TZ trade pacts reveal worrying inertia
Debt sustainability
He said the sustainability of the national debt was being analysed by the International Monetary Fund (IMF) in close cooperation with the Bank of Tanzania (BoT) and the ministry of Finance and Planning through the Debt Sustainability Analysis (DSA).
“As far as I know the latest figures that we have from the IMF are that Tanzania’s debt is very sustainable and the President was right,” Prof Rwegasira told The Citizen by phone. Some of the factors being used in the DSA include the debt as a percentage of the country’s GDP and the country’s ability to repay the loan.
The IMF is expected to conduct another DSA for Tanzania this year, but a similar exercise, conducted in 2016, showed that Tanzania’s risk of debt distress was low compared to benchmark level of 56 per cent of GDP.
The Finance and Planning minister, Dr Phillip Mpango said last November that Tanzania’s debt was barely 31.2 per cent of the country’s GDP as of July 2017.
Speaking on Wednesday President Magufuli said since the borrowed money was being invested in construction of mega infrastructure projects like standard gauge railway line and electricity generation like the Stiegler’s Gorge, it would only result into boosting the country’s ability to repay.
“In fact, some lenders are now offering even better terms….They have started coming back after realising that we are serious about implementing the projects with our own funds,” said Dr Magufuli.
He said the country already had enough funds for the Standard Gauge Railway line and the Stiegler’s Gorge projects and that the loans being entered into will only boost the available resources.
We'll still borrow despite debt concerns: Magufuli