- Thursday, 05 April 2012 09:36
- Published Date
- Nyasha Francis Nyaungwa
- Hits: 1553
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 Financeâ€™s expansionary budget in 2011.
â€śSince the introduction of this budget, debt levels have increased by approximately 53%,â€ť 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. â€śCurrent 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,â€ť 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, Namibiaâ€™s debt remains amongst the countries with the lowest debt to GDP ratios in the world.
- Articles In This Category
- Five black rhinos up for trophy hunters (808 hits)HeadlinesFive black rhino males have been earmarked to be hunted as trophy animals following the latest approval and release by Cabinet of the hunting...EIF, SME Bank bag award (529 hits)HeadlinesThe Environmental Investment Fund of Namibia (EIF) and the SME Bank have bagged another international honour at the Global Sustainable Finance Awards...Strict credit bureau regulations (217 hits)HeadlinesExpressing her joy over the recent gazetting of the credit bureau regulations, Minister of Finance, Hon. Saara Kuugongelwa-Amadhila is of the opinion...IMF concerned over bloated civil service (1348 hits)HeadlinesThe visiting International Monetary Fund (IMF) team is concerned about the high number of people employed in the civil service and the continued...Do not fly Air Namibia, the crew is striking (1039 hits)HeadlinesFailure to act decisively against the Air Namibia pilots on strike last year, has now produced a serious backlash when Cabin Crew members announced...Inspiring young minds to choose the best (2635 hits)HeadlinesA regular highlight on the annual schools calendar is the Sanlam Career Expo where learners are invited to find out what the future offers. For this...Rural areas to be electrified by 2017 - Pohamba (1598 hits)HeadlinesAll schools, clinics, market places, churches and households within an identified radius in the rural areas will be electrified within the next five...HeadlinesCorneâ€™ Kruger, a Namibian professional hunter was the centre of attention at last weekendâ€™s second Erindi game auction when he paid N$400,000 for...Chinese take over Husab (1789 hits)HeadlinesA subsidiary of Chinese state-owned, Guandong Nuclear Power Corporation (CGNPC), has all but taken over control of the Husab project, after...City still faces challenges (924 hits)HeadlinesWindhoek Mayor, Her Worship Agnes Kafula said although many significant achievements have been made during this year, other challenges such as rapid...
- Related Articles
- Domestic workers demand increase in wages (2534 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
- Ondangwa Airport runway under rehab (52 hits)HeadlinesThe Namibia Airports Company earlier this week said that the ageing Ondangwa airport runway will undergo rehabilitation.The runway will be extended...Youthful Warriors advance at Youth Games (110 hits)SportThe young warriors on Wednesday marched into the semifinals of the African Union Sports Commission (AUSC) Region 5 Youth Games Menâ€™s Competition...Volley ladies progress to next round (113 hits)SportThree Countries took part in the sub-zonal Olympic Qualifier of the Continental Cup last weekend. Teams from Angola, Zimbabwe and Namibia played at...Junior cricketers get boost (114 hits)SportSponsorship towards the Namibian U19 Cricket Team got a timely boost when Old Mutual Namibia handed over cricket apparel to the value of N$20,000 to...Karate kids receive awards (114 hits)SportChief Instructor of Shotokan Karate Academy, Sensei Willem Burger (6th Dan) and Sensei Morchen Kruger, instructor of the Khomasdal Shotokan...