Debt will reach K25.8bil: Abel


THE total government debt will reach K25.8 billion by the end of 2018 – the equivalent of 32.2 per cent of the Gross Domestic Product, according to Treasurer Charles Abel.
“By the end of 2018, the composition of total debt is projected to comprise domestic debt of 22.1 per cent of GDP or K17.7 billion,” he said.
“External debt amounts to 10.1 per cent of GDP or K8 billion, predominantly loans from multilateral, bilateral and commercial creditors.”
Abel said the estimated net budget financing requirement for 2018 was K1.9 billion.
“Commensurate with the new medium-term development strategy 2018-2022, this budget deficit is projected to be financed through external and domestic sources comprising K1.6 billion from external sources and K373.8 million from domestic sources,” he said.
“Net domestic financing will comprise K30.2 million from Treasury bills and K343.6 million from Treasury bonds.
“The external financing will be funded from concessionary budget support from the Asian Development Bank and the World Bank, commercial financing through the inaugural USD bond prograamme and some minor external loans, and the remaining balance of K337.4 million, in net terms, from concessional donor programme loans.”