Monday, June 13, 2011

IMF expresses concern over Gambia’s heavy debt burden


PDF Print E-mail


The International Monetary Fund has expressed concerned over The Gambia’s “heavy debt burden” most of which use to take large stock of the country’s outstanding treasury bills.  In 2010, interest on debt consumed about 20 percent of government revenues.
However, the IMF mission failed to disclose the amount owed by government.
The total fiscal deficit of The Gambia for 2011 is estimated at D466.36 million representing about 2 per cent of GDP.  This is expected to be financed by foreign and domestic borrowing amounting to D833.82 million and D120 million respectively.
A statement issued by David Dunn, IMF mission chief for The Gambia indicates that the IMF “welcomes the President’s leadership on addressing the debt problem.”

Mr Dunn issued this statement at the end of the IMF mission visit to The Gambia, from May 18–31, 2011.  The IMF mission was in the country to initiate negotiations on a policy framework that could be supported by a new three-year arrangement under the IMF’s Extended Credit Facility (ECF).

“We support the intention of the Government to curb its borrowing needs beginning in 2011, with the goal of achieving near-zero domestic borrowing by 2014,” the mission said.  “This will require a gradual, but steady fiscal adjustment, including a reversal of the decline in government revenues in recent years and firm restraint on spending.”
The IMF mission chief to the Gambia said:  “We welcome the recently introduced cash-budgeting approach to contain monthly expenditures, which should assist in reducing the government’s net domestic borrowing to about 2 percent of GDP in the current year. This should help to ease pressure on interest rates, generate fiscal savings, and avoid the crowding out of credit to the private sector.”
The IMF said the new ECF arrangement will support the government’s forthcoming Programme for Accelerated Growth and Employment (PAGE). Financing of the PAGE will pose a significant challenge in light of the country’s already heavy debt burden.
In addition to seeking development partner support for the PAGE, the IMF said, we welcome the authorities’ aim to embark on a program of private sector participation in critical areas of infrastructure investment, including telecommunications and electricity generation.
To build broad support for the PAGE, the IMF team encourages the authorities to further engage civil society, the donor community, and other stakeholders in the final formulation of the strategy.
The Gambian economy continues to perform well, coming off another strong year for agriculture, particularly in rice and groundnut production.  Tourism, however, has remained suppressed, owing to lingering effects of the economic slowdown in key European markets, but is expected to pick up later in the year.
Overall, gross domestic product (GDP) is projected to grow by about 5½ percent in real terms in 2011, while annual inflation would remain moderately elevated at about 6 percent, reflecting food and fuel price pressures.
IMF said the longer-term economic outlook is generally positive.
The IMF team will return to The Gambia later in the year to conduct discussions on surveillance issues and medium-term policy options, such as tax reform aimed at reducing rates and broadening the base. Program discussions could be concluded by early 2012.”

11 comments:

  1. These procedures are usually essential in evaluating the patients' progress as they continue with the therapy. Joseph's Medical Center,
    a regional medical center in Maryland, receive
    from $19. Complete rehab solutions provide services for these type people.
    Feel free to visit my web page ; Http://Cisiyuug.Fotopages.Com

    ReplyDelete
  2. When very effort that is made to save your married life fails, a marriage
    therapist is the best person who can sort out the differences and bring life back to the crumbling relationship.
    And, since you are going to look in the internet,
    you can easily pick out, from the many sites, the cheapest massage therapist that can give
    you the best Swedish massage of your life. The treatments
    and care an RT provides to these patients would be drug and oxygen administration to the
    lungs which may also call for cardiopulmonary resuscitation.
    Also visit my web page ; depression acupuncture new hope relief

    ReplyDelete
  3. What's up all, here every one is sharing these knowledge, so it's nice to read this
    weblog, and I used to pay a visit this blog daily.


    Stop by my homepage ... low carb veggies

    ReplyDelete
  4. If some one wants to be updated with latest technologies after
    that he must be pay a quick visit this web page and be
    up to date daily.

    Have a look at my web blog ... nicolai worm glücklich und schlank

    ReplyDelete
  5. There's certainly a great deal to learn about this issue. I like all the points you have made.

    Also visit my website; betriebsausgaben

    ReplyDelete
  6. Your way of telling the whole thing in this post is genuinely fastidious, all be capable of easily know it, Thanks a lot.


    Feel free to visit my webpage :: carbs diet

    ReplyDelete
  7. I am really impressed with your writing skills as well as with the layout
    on your blog. Is this a paid theme or did you customize it yourself?

    Either way keep up the nice quality writing, it is rare to see a great blog like this one these days.


    Also visit my page - steuerberatung in wiesbaden
    my web page: steuerberater empfehlung

    ReplyDelete
  8. It's an remarkable paragraph for all the online visitors; they will take advantage from it I am sure.

    Also visit my homepage: lehrstellen

    ReplyDelete
  9. Everything is very open with a very clear description of the
    challenges. It was definitely informative. Your website
    is extremely helpful. Thanks for sharing!

    Also visit my web blog; lebensmittel kohlenhydrate tabelle

    ReplyDelete
  10. Thanks a bunch for sharing this with all folks
    you really recognise what you are speaking about!
    Bookmarked. Kindly additionally consult with my site =).
    We will have a hyperlink change agreement between us

    my page drachen flugmatte

    ReplyDelete
  11. I am really thankful to the holder of this website who has shared this great piece of
    writing at at this place.

    Here is my weblog: shimano kassette drehmoment

    ReplyDelete