- Thursday, 05 April 2012 09:36
- Published Date
- Nyasha Francis Nyaungwa
- Hits: 1479
Government domestic debt levels have continued on an upward trend since the introduction of an expansionary budget in 2011 and in March they breached the N$17 billion mark for the first time.
Domestic debt increased from N$16.9 billion in February to N$17.2 billion driven mainly by an increase in internal registered stock debt which for the first time breached the N$9 billion mark.
Between February and March, debt in treasury bills increased by just 0.6%, whereas debt in internal registered stock increased by 3.8%.
But despite the domestic debt reaching record highs in March, Capricorn Group Economist Rowland Brown said at under 2.3%, this increase is the smallest month-on-month change since the introduction of the Ministry of Finance’s expansionary budget in 2011.
“Since the introduction of this budget, debt levels have increased by approximately 53%,” he said.
The main debt instruments used over this period were the GC14, which increased by N$150 million (a 13.6% increase); the GC17, which increased by N$80 million (an increase of 19.1%); the GC18, which also increased by N$80 million (an increase of 4.8%); the TB-365, which increased by 50 million (a 1.3% increase) and the GC21, which increased by N$20 million (an increase of 4.8%).
Coupon rates for domestic debt vary between 7.5% (GC14) and 13.0% (GC15), while current average yields vary from 6.05% (GC12) and 9.65% (GC27).
Current domestic debt levels are approximately 20% of GDP, with total debt approximately 27% of GDP. “Current debt is largely to fund governments TIPEEG programme, however execution rates in 2011/12 of below 75% on TIPEEG projects has meant that debt expansion has been slower than projected,” Brown said.
Further, Brown said abnormally high SACU revenues in 2012 (estimated at 13.9 billion, up from 7.1 billion in 2010/11) will help government run the expansionary budget without incurring further excessive debt.
Total external debt is estimated at approximately N$8.4 billion (awaiting quarterly data from the Bank of Namibia) after the issuance of the Eurobond in October 2011. Debt levels are expected to peak in 2013/14 at approximately 30% of GDP, before returning to approximately 28% in 2014/15 due to fiscal consolidation.
At current levels, Namibia’s debt remains amongst the countries with the lowest debt to GDP ratios in the world.
- Articles In This Category
- Almost 2000 new erven in Windhoek (1096 hits)HeadlinesThe first phase of the City of Windhoek’s TIPEEG programme for the servicing of land in low cost areas such as Otjomuise Extension 10, is almost...Visas required for Canada (901 hits)HeadlinesAs from 11 September 2012 citizens of Namibia, Botswana, and Swaziland are required to apply for a visa to travel to Canada. The announcement was...New curriculum for schools (1327 hits)HeadlinesPlans are at an advanced stage to introduce a new curriculum for both primary and secondary schools, Education Minister Dr David Namwandi has said....Namdeb misses production target (1860 hits)HeadlinesBut company stays on course to meet profit targets Diamond producer, Namdeb says it has so far missed production targets because of problems...Access into Oranjemund remains controlled (1919 hits)HeadlinesAccess into the mining town of Oranjemund still remains controlled despite the fact that it was recently proclaimed as a town. The town held its...HeadlinesThe Namibia Youth for Development (NYD) celebrated a milestone earlier this week when its members entered into an agreement with Evatelo’s in...First Agra shares trade on NSX (737 hits)HeadlinesMysterious buyer mops up batches The first batch of Agra shares changed hands this week Tuesday following the recent conversion of the former...Erongo RED warns of power shortages by 2013 (2929 hits)HeadlinesThe CEO of Erongo RED, Gerhard Coeln, has warned that Namibia could face a serious shortage in electricity supply as early as 2013 due to increased...Fine list (1057 hits)HeadlinesThe Traffic Management Unit Department of the Namibian Police released its annual National Fine List for traffic offences. Traffic fines range from...HeadlinesAs the only woman on the Standard Bank Namibia Board, Martha Namundjebo-Tilahun recently received the African Business Leaders of the Year Award from...
- Related Articles
- Domestic workers demand increase in wages (2433 hits)General News 2011A campaign which calls for an increase in the wages of domestic workers and an overall improvement in their working conditions, is in full swing. The...General NewsThe Namibia Employers Federation (NEF) recently announced its plans to establish an organisation for employers of domestic workers. According to Tim...General NewsThe escalating media reports on gender based violence has shocked many Namibians, especially women, who no longer feel safe in their own homes. A...General NewsThe Wages Commission on Domestic Workers is heading South to host its third rounds of public meetings to garner input from employers, employees,...HeadlinesThe recent world-wide growth in the mobilisation of financial resources outside the traditional banking sector, channeled through capital markets, is...
- Latest Articles
- Fight against ancer continues (79 hits)HealthBank Windhoek handed over N$1.8 million in donations to the Cancer Association of Namibia(CAN) earlier this week, bringing the total amount raised...Better city roads (38 hits)Special FocusCommuters from Katutura’s northern suburbs up to Goreangab, will have to find an alternative route into the city once the main artery, Monte...Community and CultureHistory Book by Gordon McGregor, Mannfred Goldbeck: The First World War in Namibia. Gondwana Collection Namibia, Windhoek 2014, ISBN...General NewsReinhard Mahalie is a fashionista, personal stylist who is busy building his fashion and entertainment empire. Currently working for a local bank and...Odyssey tests Rangers in remote Kaoko (43 hits)HeadlinesA brawl of Ford Rangers roared into Windhoek on Thursday, back from an exhilarating and gruelling 12-day trip through the Kaokoveld. George van Zyl...