Namibia’s domestic debt increases to 68.2 percent

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Namibia’s debt stock rose over the year to the end of June 2022 where the total as a percentage of GDP stood at 68.2 percent, accounting for a yearly increase of 0.4 percentage points, the Bank of Namibia said Friday.

In a statement in the bank’s September quarterly bulletin, Strategic Communications and International Relations Director Kazembire Zemburuka said the yearly increase was driven by a rise in the issuance of both Treasury Bills (TBs) and Internal Registered Stock (IRS).

Zemburuka said external debt declined year on year owing to the redemption of one of the Eurobonds in November 2021.

“Total loan guarantees as a ratio of GDP declined to 5.3 percent on a yearly basis, from 6.8 percent during the corresponding quarter in 2021. This was mainly a result of the repayments of foreign loans, which were guaranteed by the Government in sectors such as transport and energy, coupled with the repayment of domestic loans to the transport sector,” he said.

Namibia’s total debt as a percentage of gross domestic debt (GDP) breached the Southern African Development Community (SADC) benchmark of 60 percent in 2021 where at the end of June 2021, this figure stood at 63.2 percent.

He said the stock of international reserves rose to a level of 2.56 billion U. S. dollars at the end of the second quarter of 2022, equivalent to 5.1 months of import cover, mainly due to inflows over the past year in the form of an IMF Special Drawing Rights allocation, asset swaps, and revaluation gains. The level of foreign reserves further increased to 2.6 billion U. S. dollars at the end of August 2022, partly due to revenue and revaluation gains of the Southern African Customs Union (SACU). Enditem

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