Tanzania's external debt stock drops in January

Tanzania's external debt stock on monthly basis decreased by 68.7 million US dollars in January, thanks to exchange rate fluctuation during that period.

The Bank of Tanzania (BoT) says on its latest report that the external debt stock as at the end of January 2015 slowed down to 14.49 bn US dollars after it decreased by 68.7 mil US dollars from the amount recorded at December 2014.

“The decrease during the month was on account of exchange rates fluctuations,” BoT says in its Monthly Economic Report of February released recently.

However, on annual basis, the stock of debt increased by 1.31 billion US dollars compared to debt stock registered at the end of December 2014, driven by new disbursements.

The profile of external debt by borrower category shows that as at the end of January 2015, the central government debt increased by 136.4 million US dollars, mainly due to the appreciation of dollar against Special Drawing Rights (SDR).

In terms of creditor category, the external debt owed to multilateral creditors decreased by 144.6 million US dollars, mainly driven by depreciation of SDR against dollar.

“The share and amount of debt owed to other creditor categories remained around the levels recorded at the end of the preceding month,” BoT says.

In January, the largest proportion of outstanding debt was utilised in transport and telecommunication, followed by balance of payments and budget support, and social welfare and education.

However, the proportion of outstanding debt utilised in transport and telecommunication declined to 21.9 per cent from 27.3 per cent at the end of corresponding period in 2014.

External loans that were contracted during the year ending January amounted to 820.2 million US dollars. Out of the amount 500 million US dollars was contracted by the government and 320.2 million US dollars, by the private sector.

The stock of government’s domestic debt decreased by 900m/- to 7.48tri/- January 2015, from the amount recorded at the end of December 2014.

On other hand, on annual basis, domestic debt increased by 1.39tri/- from 6.08tri/- recorded at the end of January 2014, attributed by issuance of government securities.

In terms of the profile of domestic debt by instruments, Treasury bonds accounted for the largest share of 68 per cent, amounting to 5.08tri/-, followed by Treasury bills went up by 28.5 per cent to 2.13tri/-.
Source: Daily News, reported from Dar es Salaam, Tanzania
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