Gambia: Country's Debt GDP Moved From 85 Percent to 72 Percent - Finance Minister

23 September 2024
The Point (Banjul)
By Jankey Ceesay

The minister for Finance and Economic Affairs, Seedy Keita has disclosed before lawmakers that The Gambia's debt GDP has moved from 85% down to 72% in less than two years, citing that the trajectory is being maintained.

He stressed that "Gambia has never gone into a debt distress situation and we have countries in Africa that are going through that. Therefore, it is not true to say that The Gambia is the most indebted country in Africa. In fact our debt is sustainable and it is on a downward path," he said.

"So far the ministry has conducted an assessment to determine the depreciation impact of the individual currencies on the public debt at the end of December 2023," he said.

"As of that period, the impact of the depreciation of the dalasi and the foreign currency debt portion amounted to 7.56 billion out of the total loan stock of D110 billion as of December 2023."

"In 2017, the new administration inherited an over drawn TMA to the tune of D10.8 billion. This was a debt in the system that was not recorded.

"In 2018 the government had an MOU to take over the liability of NAWEC and issued a seven-year market bond at market rate which was D1.7 billion to make the debt service payment. Also there were unconfirmed debts to other parties to the tune of 2.4 billion."

"Total debt stock at the beginning of 2017 was D46 billion, the 30-year bond was D10.8 billion, NAWEC bond was D1.6 billion and unconfirmed debts of D2.3 billion as well as EFax D7.6 billion."

He further stated that as a result of that, the net borrowing under the new dispensation rose to D41.9 billion and this net debt borrowing was to finance projects such as the new Bertil Harding Highway, phase one of The University of The Gambia, Rehabilitation of the Banjul International Airport, Construction of the VIP Lounge at the Airport, OMVG Interconnection Project and Gambia Renewable Project among others.

When asked if his ministry has plans to control the exchange rate of CFA and other currencies in the country, the minister responded: "We follow a literal open market exchange rate regime. Therefore, the exchange rate is as per the market forces. We do not have a control exchange rate regime. The rates are as per the supply and demand and market forces."

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