The International Monetary Fund (IMF) said Tuesday that Gambia has experienced sharp decrease in treasury bill due to budget support.
“The debt service to the GDP ratio has risen from 22 percent to 46 percent in 2016,” IMF country representative to Gambia Rudy Randall said at stakeholders’ discussion on the recent IMF economic report.
He said the projected decline in the country’s debt is attributed to government’s cut in spending and support from international funding partners that addressed the budget deficit.
A report published in early October indicated that public debt of Gambia is expected to decline from its unsustainable level of 124 percent to the GDP to 112 percent.
“There were banks that get up to 78 percent of their revenue from treasury bills,” IMF economist Bernard Mendy said.
Permanent secretary at the finance ministry Lamin Camara said the banks have to adjust to making right investment decisions instead of relying on treasury bill.
Gambia is reportedly struggling with 49 billion dalasis debt (about 1 billion U.S. dollars), with its debt per GDP ratio being the highest in Africa and two times more than the regional average. Enditem