Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 65,136
- 91,917
So when u r LCD then u can't be rated? Ujuha wako umepitiliza this year Tanzania will be rated n get her Eurobond. U r an idiot n illiterate on theseveral issues.
So when u r LCD then u can't be rated? Ujuha wako umepitiliza this year Tanzania will be rated n get her Eurobond. U r an idiot n illiterate on theseveral issues.And still Kenya has a higher ability to repay back its loans more than tanzania.... And thats why we have a credit rating of B+ while tanzania is not even qualified to be rated because its considered LCD thus when given a loan the terms of the loan are less forgiving and no one can hold you at ransom if you fail to pay on time.....The lender will give a loan at his own discretion on a one on one basis... Its only in 2016 that tanzania govt asked an international firm to help it prepare some form of credit rating so that investors can be informed before making a decision on your yet to be launched $800 Eurobond
Always References zenu huwa ni Marekani na nchi za EU, Nadhani uwezo wako wa Kung'amua mambo ni wa chini sana.Hili swala la mikopo tutawaelimisha mara ngapi.
Hivi waTz mbali na uwezo wenu mdogo wa kung'amua pia mpo wepesi wa kusahau hivi.
Hata nchi iliyoendelea na tajiri kama Marekani pia wana matrioni ya dola kwa mikopo...
Borrowing loans to pay Debts.... Tanzania credit rating is lower than Kenyas.... so watanzania, please check the log in your eyes first.....
Tanzania Power Issues Casts Shadow on $12 Billion Debt Plan
For investors considering financing Tanzania’s proposed 27.6 trillion-shilling ($12.3 billion) borrowing program, the government’s handling of its power utility’s debt problems may give pause for thought.
Last month, President John Magufuli fired the Tanzania Electric Supply Co.’s chief executive officer and vetoed its decision to raise electricity prices, ignoring International Monetary Fund advice that higher tariffs may help improve the company’s financial position. The state is also facing international arbitration over its failure to pay more than $35 million owed for power supplied to Tanesco from a gas-fired plant built by Washington-based Symbion Power.
“The current state of Tanesco is a cautionary tale about how state-owned enterprises in Tanzania are managed, particularly with respect to debt,” said Ahmed Salim, a vice president at Teneo Strategy, a Dubai-based research group. “In order for Tanzania to secure a good credit rating, institutions like Tanesco have to have the opportunity to reform, even if it means raising tariffs.”
Symbion didn’t immediately respond to requests for comment.
The nation with East Africa’s largest deposits of natural gas after Mozambique plans to spend at least 107 trillion shillings ($47.9 billion) over the next five years on projects including a liquefied natural gas plant, rail links, and an industrial zone around a planned port at Bagamoyo. The government is obtaining a credit rating and its borrowing plans include an $800 million Eurobond and syndicated loans, the Finance Ministry said in December.
Financial Troubles
Tanesco’s travails could increase the premium at which Tanzania enters the Eurobond market, and weigh on any credit ratings, said Lisa Brown, an analyst at Rand Merchant Bank, a unit of Johannesburg-based FirstRand Ltd.
The utility’s debt is estimated at more than $300 million, according to Teneo. In 2013, Tanesco raised $250 million in five- and seven-year loans. Last year, it asked the World Bank for a $200 million emergency loan that’s still pending.
“The longer the company remains financially unstable, the more of a burden they are to the government as they often have to guarantee the loans,” Brown said. “Because of Tanesco’s financial troubles, and the debt risks it poses, the company exposes the government, especially when these loans are taken in foreign currency.”
Energy and Minerals Minister Sospeter Muhongo said the state will transform Tanesco by reorganizing it into a smaller, more efficient company, rather than by raising power costs for a country trying to industrialize. The nation’s abundant natural resources and a growing economy are guarantees that it can repay debt, he said.
“Hiking tariffs will bring about high production costs and consequently very high food and other industrial prices,” Muhongo said by phone. “We are not in a desperate situation when it comes to our debt.”
The country is ramping up borrowing for projects. In January, Magufuli asked Turkish counterpart Recep Tayyip Erdogan to help fund a $7.5 billion rail line to neighboring states. Days later, Turkish construction company Yapi Merkezi Insaat VE Sanayi As and Portuguese building firm Mota-Engil SGPS SA won the contract for the first of a five-phase project, a 300-kilometer (127-mile) track for $1.2 billion.
Tanzania and the World Bank also discussed loans of as much as $1.3 billion last month.
About 43 percent of what Tanzania plans to borrow for its development program will come from foreign investors, according to a Finance Ministry proposal in June last year.
‘Plenty of Headroom’
The long-term and concessional nature of Tanzania’s debt makes servicing well within the country’s power, according to Brown. The gamble is whether it can meet obligations on time. The risk of distress will be relatively low if Tanzania reduces debt by increasing domestic revenue and cutting back expenditure, the IMF said in a debt sustainability report in June.
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More than half of Tanzania’s current $19 billion debt is external, with the total accounting for about 34 percent of gross domestic product. Over the past six years, its debt-to-GDP ratio has grown by 7 percentage points. The government still has plenty of borrowing headroom with a public-debt ceiling of 56 percent of GDP, Finance Minister Philip Mpango told lawmakers in the capital, Dodoma, on Jan. 31.
“Tanzania still has the ability to continue to borrow domestically and abroad to finance its development activities and also has the ability to repay maturing loans using internal and external income,” he said.[/QUOTE
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UchuMi wa Tanzania unakuwa at a fast rate than any other country in EA n 2nd in the whole Africa. We r focused on industrialising the country in this phase n the good thing is all strategic resources r there enmase. So with the exception of the few crucial infrastructural projects that some of them will be financed by MNCs e.g. the $30 bln LNG plant in Lindi n the $ bln East Africa pipeline our future is very bright. We don't need to take debts as Kenya.The debt to GDP ratio not so bad for TZ. Swali ni: what are their priority projects aside from the LNG plant and Bagamoyo port projects. Watumie hii fursa ya reasonable credit rating kuinua uchumi wao.
Cc @.Geza Ulole
Huwa huamini wao ni Marekani piaAlways References zenu huwa ni Marekani na nchi za EU, Nadhani uwezo wako wa Kung'amua mambo ni wa chini sana.
Listen to yourself. You say in the same paragraph, there are MNCs financing those projects, kisha unadhani those arent loans. Do you even understand the world of financing of large projects,ama unadhani wanajenga village biodigester ama vipi. Those things are all financed by multilateral lenders kijana. Its important to be well informed geza, utapata unajiaibisha kila mara. Or you think TZ doesnt borrow on international finance markets?UchuMi wa Tanzania unakuwa at a fast rate than any other country in EA n 2nd in the whole Africa. We r focused on industrialising the country in this phase n the good thing is all strategic resources r there enmase. So with the exception of the few crucial infrastructural projects that some of them will be financed by MNCs e.g. the $30 bln LNG plant in Lindi n the $ bln East Africa pipeline our future is very bright. We don't need to take debts as Kenya.
That still doesnt drive growth, so whats the point?U laugh at Tanzania's 34% while Kenya’s debt to Gdp ratio is over 51%
Those r investments that Kenya wishes to have so badly stupid. Ati loan umesomea wapi uchumi?Listen to yourself. You say in the same paragraph, there are MNCs financing those projects, kisha unadhani those arent loans. Do you even understand the world of financing of large projects,ama unadhani wanajenga village biodigester ama vipi. Those things are all financed by multilateral lenders kijana. Its important to be well informed geza, utapata unajiaibisha kila mara. Or you think TZ doesnt borrow on international finance markets?
Jihoji kaka
Sorry about that, nilitaka kutumia Tanganyika na Zanzibar then nikakumbuka.........ama wacha tu.Always References zenu huwa ni Marekani na nchi za EU, Nadhani uwezo wako wa Kung'amua mambo ni wa chini sana.
punguza povu, Ujuha, Idiot, illiterate all in two sentences! Most of the LDCs are not rated with exception of few who paid a certain fee to be rated because they wanted to take some big loan. (Tanzania is doing the same, under normal circumstances, you don't pay to be rated -atleast not directly- because that will lead to favourtism -it will be like a bribe, but there are exception when its allowed) Also it doesnt hurt if you have newly discovered minerals to back you up even if you are technically LDC..So when u r LCD then u can't be rated? Ujuha wako umepitiliza this year Tanzania will be rated n get her Eurobond. U r an idiot n illiterate on theseveral issues.
punguza povu, Ujuha, Idiot, illiterate all in two sentences! Most of the LDCs are not rated with exception of few who paid a certain fee to be rated because they wanted to take some big loan. (Tanzania is doing the same, under normal circumstances, you don't pay to be rated -atleast not directly- because that will lead to favourtism -it will be like a bribe, but there are exception when its allowed) Also it doesnt hurt if you have newly discovered minerals to back you up even if you are technically LDC..
Kenya has been rated since 2010 while a country like Tz has never been rated before because it could live on aid and grants but as you grow to a certain point the money stops comming because these countries that gave you these monies want to concentrate on worse economies, so Tanzania has no choice but to seek the services of credit rating agencies so they can ask for big buck loans .
You have been in negotiations with these credit rating agencies since 2015-16 for them to rate you and thats why your eurobond was delayed........
In 5-7 years time (between 2022-2025) Tanzania will attain her middle income status..... And then you will start to suffer big boys problems like no free exports to EU, loans at higher interest rates....... but even before you achieve middle income... aid will gradually start to drop, you will begin to be expected to start fending for yourself..
Tanzania: Govt Secures Credit Rating Services for Eurobond Issue
The government will sign contracts for credit rating services with two agencies in November before it issues its maiden sovereign bond later in the next financial year.
According to Guidelines for Annual Plan and 2016/17 budget, the government has completed procurement of agencies and contracts for rating services with the two selected agencies are in the final stage.
The government intends to acquire sovereign credit rating from agencies with intention to access funding from International Bond Market for financing priority infrastructure projects.
A positive rating from this exercise will create conducive condition for both the government and private sector to borrow from the international financial market at relatively better terms.
Former Finance Minister, Ms Saada Mkuya Salum said last year that the government had concluded discussion with Fitch Ratings for a sovereign credit rating and was finalising similar discussions with Moody's Investors Service, paving the way for a possible debut Eurobond debt issue.
The government is planning to borrow much as 800 million US dollars through a sovereign Eurobond to fund key infrastructure projects in the wake of declining sources of grants and concessional loans.
According to the guidelines, concessional sources of borrowing are anticipated to decline as the country graduates to a middle income status which will entail a gradual reduction of aid flow.
waa yaani bongo ni ligi ya kina Uganda. na Rwandan
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Tanzania aims for debut Eurobond in 2017/18 - ministry | Reuters
DAR ES SALAAM (Reuters) - Tanzania aims to issue its first Eurobond in fiscal 2017/18 to fund new infrastructure, the Finance and Planning Ministry said on Thursday, after repeated delays in the launch as it sought a credit rating.
It did not say how much the bond would be worth, but said the government wanted to raise $900 million in the financial year starting July 1 to fund infrastructure projects.
We ndo mpumbavu haswa, kuchelewa ku-issue Eurobond haitokani na kuwa an LCD bali global economic situation ambapo interest rates zina-fluctuate kila wakati. A smart government can not rush into issuing a Eurobond like what Kenya did! Ask Ghana n Zambia to explain that dundeehead of urs that market situation decides the best moment to go for! For ur info Tanzania will get better credit rates than Kenya as our inflation n foreign reserves r in better shape than Kenya.punguza povu, Ujuha, Idiot, illiterate all in two sentences! Most of the LDCs are not rated with exception of few who paid a certain fee to be rated because they wanted to take some big loan. (Tanzania is doing the same, under normal circumstances, you don't pay to be rated -atleast not directly- because that will lead to favourtism -it will be like a bribe, but there are exception when its allowed) Also it doesnt hurt if you have newly discovered minerals to back you up even if you are technically LDC..
Kenya has been rated since 2010 while a country like Tz has never been rated before because it could live on aid and grants but as you grow to a certain point the money stops comming because these countries that gave you these monies want to concentrate on worse economies, so Tanzania has no choice but to seek the services of credit rating agencies so they can ask for big buck loans .
You have been in negotiations with these credit rating agencies since 2015-16 for them to rate you and thats why your eurobond was delayed........
In 5-7 years time (between 2022-2025) Tanzania will attain her middle income status..... And then you will start to suffer big boys problems like no free exports to EU, loans at higher interest rates....... but even before you achieve middle income... aid will gradually start to drop, you will begin to be expected to start fending for yourself..
Tanzania: Govt Secures Credit Rating Services for Eurobond Issue
The government will sign contracts for credit rating services with two agencies in November before it issues its maiden sovereign bond later in the next financial year.
According to Guidelines for Annual Plan and 2016/17 budget, the government has completed procurement of agencies and contracts for rating services with the two selected agencies are in the final stage.
The government intends to acquire sovereign credit rating from agencies with intention to access funding from International Bond Market for financing priority infrastructure projects.
A positive rating from this exercise will create conducive condition for both the government and private sector to borrow from the international financial market at relatively better terms.
Former Finance Minister, Ms Saada Mkuya Salum said last year that the government had concluded discussion with Fitch Ratings for a sovereign credit rating and was finalising similar discussions with Moody's Investors Service, paving the way for a possible debut Eurobond debt issue.
The government is planning to borrow much as 800 million US dollars through a sovereign Eurobond to fund key infrastructure projects in the wake of declining sources of grants and concessional loans.
According to the guidelines, concessional sources of borrowing are anticipated to decline as the country graduates to a middle income status which will entail a gradual reduction of aid flow.
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Tanzania aims for debut Eurobond in 2017/18 - ministry | Reuters
DAR ES SALAAM (Reuters) - Tanzania aims to issue its first Eurobond in fiscal 2017/18 to fund new infrastructure, the Finance and Planning Ministry said on Thursday, after repeated delays in the launch as it sought a credit rating.
It did not say how much the bond would be worth, but said the government wanted to raise $900 million in the financial year starting July 1 to fund infrastructure projects.
We have never borrowed to pay our workers. We borrow for development, am sure Thika road has already paid for itself, With the massive developments on that route.
With all this debt, our Fitch rating is still B+ and B1 (moody's), financiers trust us to pay back. We have also never failed to meet our debt requirements, we pay yearly and on time.
Hawa WB mbona wanakaza vichwa? Iko wazi hiyo sh18 billion wanayoiongelea imetengewa corruption ili Takukuru ya kenya (anti corruption comission) wapate kazi ya kufanya!!Kenya spent some borrowed money on wages and salaries, says World Bank
By Otiato Guguyu and Dominic Omondi | Updated Sat, April 15th 2017
The World Bank (WB) has fired a warning shot at the Government for using debt to settle recurrent expenditure.
In a new report on the state of the Kenyan economy, the global lender says it has noted with concern that Kenya is borrowing more than it is spending on development projects, meaning that the money is being used on wages and for purchasing goods and services.
“Overall borrowing in 2015/16 outstripped development spending by 0.1 percentage points, suggesting a small part of the borrowing financed part of the recurrent spending,” said the bank in its latest edition of Kenya Economic Update.
Last year, the National Treasury planned to borrow Sh700 billion while the development budget was estimated at Sh682 billion. WB says this is an indication that the Government is going against a legal requirement that debt be used solely for financing investments.
“This is a departure from the fiscal responsibility principles set out in the Public Finance Management Act (PFM Act),” said WB.
The scathing verdict comes just days after President Uhuru Kenyatta assured Kenyans that the Sh4 trillion debt is not going into consumption, dismissing critics who have questioned his administration’s high appetite for debt.
Kenya spent some borrowed money on wages and salaries, says World Bank