- Thursday, 05 April 2012 09:36
- Published Date
- Nyasha Francis Nyaungwa
- Hits: 1866
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
- Namcor wants fuel mandate back (1205 hits)HeadlinesThe state-owned energy company, Namcor is lobbying government for the return of its fuel import mandate that was withdrawn in 2010 after the company...Aligning energy investors with industry (278 hits)HeadlinesInvestors and developers in the energy industry meet again in Cape Town at the 8th annual Powering Africa conference to discuss financing...NBL getting bigger and better (549 hits)HeadlinesOhlthaver & List Group of Companies (O&L) announced that they have agreed to restructure their South African and Namibian joint ventures with...Oranje corridor revitalised (1414 hits)HeadlinesAus-Luderitz railway link nearing completion Construction of the much anticipated Aus-Luderitz railway line is expected to be concluded by the end...Oktoberfest gears up a notch (1212 hits)HeadlinesOctober is time for Oktoberfest, this year to be held on 26 and 27 October at the SKW in Olympia. German tradition got a head start this week when...City will continue with land auctions (351 hits)HeadlinesThe City of Windhoek this week revealed that land auctions in the Academia Ext 1 and and 2 will go on uninterrupted despite a ministerial decision to...Okahandja in quest for tier one status (841 hits)HeadlinesHer Worship, Valery Aron and her town council are currently banking on the growth of the garden town due to the vast developments taking place and...Carriageway coming up (825 hits)HeadlinesRehabilitation and expansion of the Okandjengendhi bridge is fast nearing completion. This weak point in the trunk road linking Oshakati and...Katuka mentors more businesswomen (927 hits)HeadlinesA contingent of 15 mentors and mentees from all walks of life graced the Katuka Mentorship Programme for this year which was held at the University...Mutual turns168 (2182 hits)HeadlinesOn 17 May, Old Mutual celebrated its 168th birthday. Old Mutual Namibia marked this special day with a focus on the benefits of diversity in...
- Related Articles
- Domestic workers demand increase in wages (2984 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
- Thank you for paying back your loans on time (2146 hits)HeadlinesThe Good Business and Innovation Awards of the Development Bank of Namibia have become the benchmark for seed capital performance.HeadlinesThe National Commission on Research, Science and Technology announced this week that for the first time since Namibia’s Independence, a substantial...MVA Emergency Response Unit now operational (2140 hits)HeadlinesThe Motor Vehicle Accident Fund of Namibia is now able to respond to emergencies since it has received the green light from the Ministry of Health...Editors DeskThe importance of the Motor Vehicle Accident Fund establishing and operating its own dedicated Emergency Response Unit, can not be overemphasised....Weather 09 October 2015 (73 hits)WeatherWhat Happened The main feature of this week’s synoptic progression is the absence of both the South Atlantic and the southern Indian high pressure...