Tanzania: National debt burden bulges to over US$14b

posted in: Africa

Dar es Salaam, Tanzania (PANA) – Tanzania’s external debt stock swelled to over US$14 billion at the end of June 2014, on account of new disbursements and accumulation of interest arrears, the central bank said in a new report released Thursday.

“The external debt stock increased across all creditor categories on account of new disbursements,” the Bank of Tanzania said in its Monthly Economic Review for June 2014, explaining that a large proportion of outstanding debt was in transport and telecommunication, followed by balance of payments and budget support, as well as social welfare and education.

New disbursements during the month amounted to US$299.9 million, out of which US$264.7 million was disbursed to the Government and US$35.2 million to the private sector.

“On annual basis, the central government debt increased by US$1.3 billion,” the report showed, saying new loans contracted during the year ended June 2014 amounted to US$955.8 million.

Out of that amount, the government contracted loans of US$430.9 million while US$524.9 million was contracted by the private sector.

“External debt paid during the month of June 2014 amounted to US$12.2 million, out of which US$8.7 million was principal repayments and US$3.5 million was interest payments,” the bank said, adding that payments effected during the year ended June 2014 was US$214.3 million.

Out of that amount, US$101.5 million was principal repayments and US$112.8 million was payment of interest and other charges, according to the report.