Total government debt at N$125.7 billion
68.0% of GDP
Going forward, the total debt stock is anticipated to rise to N$165.5 billion over the Medium-Term Expenditure Framework (MTEF) period.
As at 31 March 2022, the total government debt stock stood at N$125.7 billion, according to the Bank of Namibia (BoN) quarterly bulletin.
The debt level represents a yearly increase of 13.9%, which was mainly driven by a rise in the issuance of both Treasury Bills (TBs) and Internal Registered Stock (IRS).
Quarter-on-quarter, total government debt stock increased by 1.1% and was also driven a rise in the issuance of Treasury Bills (TBs) as well as the Internal Registered Stock.
Total debt as a percentage of gross domestic product (GDP) stood at 68.0% at the end of March 2022, which is above the Southern African Development Community (SADC) benchmark of 60.0% of GDP, BoN pointed out.
More specifically, government’s total domestic debt rose by 23.4% and 3.4%, year-on-year and quarter-on-quarter, respectively, to N$94.9 billion during the fourth quarter of FY2021/22.
In addition, the government’s external debt stock declined, year-on-year, by 7.9% to N$30.7 billion in the fourth quarter of FY2021/22.
The decline was due to the redemption of a Eurobond during November 2021 at the value of U$500 million. On a quarterly basis, the external debt stock declined by 5.5%, from N$32.5 billion, owing to the appreciation of the Namibia Dollar against the US Dollar. As a ratio of GDP, external debt declined by 2.3 percentage points to 16.6% at the end of March 2022, BoN said.
Deficit
Namibia’s current account deficit deteriorated whereas the International Investment Position recorded a net liability position during the first quarter of 2022. The current account deficit rose to 15.9% of GDP from 7.6% registered in the corresponding quarter of 2021. This was largely attributed to the deterioration in the merchandise trade deficit, reflecting higher growth in import payments, particularly for mineral fuels, food and fertilizers, BoN added.
The lower net inflows on the secondary income account, attributed to a fall in Southern African Customs Union (SACU) receipts, also contributed to the higher current account deficit. The financial account balance recorded a higher net capital inflow, mainly due to net inflows of direct and portfolio investment. At the end of the first quarter of 2022, Namibia’s international investment position recorded a net liability position, switching from a net asset position recorded a year ago as the stock of foreign liabilities rose faster than the country’s foreign assets, BoN said.
The debt level represents a yearly increase of 13.9%, which was mainly driven by a rise in the issuance of both Treasury Bills (TBs) and Internal Registered Stock (IRS).
Quarter-on-quarter, total government debt stock increased by 1.1% and was also driven a rise in the issuance of Treasury Bills (TBs) as well as the Internal Registered Stock.
Total debt as a percentage of gross domestic product (GDP) stood at 68.0% at the end of March 2022, which is above the Southern African Development Community (SADC) benchmark of 60.0% of GDP, BoN pointed out.
More specifically, government’s total domestic debt rose by 23.4% and 3.4%, year-on-year and quarter-on-quarter, respectively, to N$94.9 billion during the fourth quarter of FY2021/22.
In addition, the government’s external debt stock declined, year-on-year, by 7.9% to N$30.7 billion in the fourth quarter of FY2021/22.
The decline was due to the redemption of a Eurobond during November 2021 at the value of U$500 million. On a quarterly basis, the external debt stock declined by 5.5%, from N$32.5 billion, owing to the appreciation of the Namibia Dollar against the US Dollar. As a ratio of GDP, external debt declined by 2.3 percentage points to 16.6% at the end of March 2022, BoN said.
Deficit
Namibia’s current account deficit deteriorated whereas the International Investment Position recorded a net liability position during the first quarter of 2022. The current account deficit rose to 15.9% of GDP from 7.6% registered in the corresponding quarter of 2021. This was largely attributed to the deterioration in the merchandise trade deficit, reflecting higher growth in import payments, particularly for mineral fuels, food and fertilizers, BoN added.
The lower net inflows on the secondary income account, attributed to a fall in Southern African Customs Union (SACU) receipts, also contributed to the higher current account deficit. The financial account balance recorded a higher net capital inflow, mainly due to net inflows of direct and portfolio investment. At the end of the first quarter of 2022, Namibia’s international investment position recorded a net liability position, switching from a net asset position recorded a year ago as the stock of foreign liabilities rose faster than the country’s foreign assets, BoN said.
Kommentaar
Republikein
Geen kommentaar is op hierdie artikel gelaat nie