- Thursday, 05 April 2012 09:36
- Published Date
- Nyasha Francis Nyaungwa
- Hits: 1596
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
- Erongo benefits from DBN’s new policy (1455 hits)HeadlinesLatest figures from the Development Bank of Namibia (DBN) shows that the Erongo Region has overtaken the Khomas Region in terms of the value of loans...2013 inflation to average 6.4% (1210 hits)HeadlinesThe Bank of Namibia estimates that inflation will average 6.4% in 2013, a marginal decrease from the 6.5% recorded last year. Despite the recent fuel...Gold starts to flow at Otjikoto (133 hits)HeadlinesNamibia’s second gold mine announced this week that the first gold pour occurred, ahead of schedule at the Otjikoto gold mine, situated 300...Epangelo left out in the cold (3010 hits)HeadlinesState owned mining company, Epangelo has been left out in the cold after reports emerged this week that Swiss-based commodities trader, Glencore has...Labour law very strict – NEF (1641 hits)HeadlinesThe Namibian Employers’ Federation says strict labour laws are contributing to the high unemployment rate in the country. Tim Parkhouse, Secretary...NamWater to sign deal with AREVA (2854 hits)HeadlinesAfter years of negotiations, the national water utility, NamWater has finally signed a Memorandum of Understanding with AREVA that will pave the way...New law to restrict foreign ownership of banks (1679 hits)HeadlinesA new law proposed by the Bank of Namibia will revolutionise the local banking sector by setting a limit for bank ownership by foreign nationals....HeadlinesThe winner of the Best Business Idea competition run by the Economist Businesswomen Club after their Businesswomen Conference in Ongwediva, was...Auto Show launched at Old Wheelers Club (847 hits)HeadlinesStandard Bank Namibia launched the 2014 Auto Show on this week at the Old Wheelers Club, Olympia. The Standard Bank Auto Show will be held on 04 and...Businesswoman controversy ! (2245 hits)HeadlinesEricah Shafudah received the award as the new Namibian Businesswoman of the Year this week. This decision immediately created a major upheaval as it...
- Related Articles
- Domestic workers demand increase in wages (2601 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
- Namibia Procurement Fund faces closure (55 hits)HeadlinesThe Namibia Procurement Fund faces closure should the Namibia Financial Institutions Supervisory Authority (Namfisa) not change its stance with...Revival for Whk city centre (37 hits)HeadlinesThe City of Windhoek has ambitious plans to revive the central business district of Windhoek to turn it into a vibrant hub, especially after hours...Weather 30 January 2015 (21 hits)WeatherWhat Happened The Inter-Tropical Convergence Zone is gradually developing to the western quadrant of the southern African subcontinent. Since the...HeadlinesThe premiere of the film Katutura was held on Thursday evening at Mareua Mall Ster Kenikor and guests came dressed Hollywood style. These boys did...Editors DeskWhat is it in the human psyche, when it is confronted by a problematic situation, to create a narrative to interpret that situation, and then to turn...