D4 Billion Debt Repayment in the face of a Pandemic
A slowdown in economic activity caused by the Coronavirus outbreak and a sustained closure of the countrys air space & bordersare expected to account to a contraction thisyear.
Recent twitter postings show the International Monetary Fund (IMF) boss, Kristalina Georgieva, interface with various world leaders seeking bailout draws, or just about enough breathing space in debt repayment regime alas focus soon turned closer to home.
In the midst of it all that is Friday night highlight of a hazy rush, a chilled evening breeze soon drew me into focus, although a flash of Coronavirus lurks large in the city. So, what is a man got to do on government imposed isolation observing social distancing?
The issues with Gambias debt trap are extremely complex, evidenced by poorly financed agreements. Try to ask any Gambian on the high street about the debt situation and gauge their reactions: I assure you few will have understood, or aware of the extremeburdens it places on effective governance.
As it stand The country pays a truck load of cash on the principal loan contracted over the past many years under Jammeh, as well as thecurrent administration. Monthly repayments total as much as D500,000,000 ($10,000,000)in interest servicing alone.
While the finance minister would boast that monthly collections at the port outstrip debt repayment regime, these valuable assets could have otherwise used to rebuild the countrys vast crumbling infrastructure, dilapidated public structures, libraries and cleaner streets.The imposed repayment framework signed under clouds of darkness then sold to the population as gold dust is indefensible reprehensible indeed.
The IMF yesterday announced that it will offer up to $50bn in emerging financing for countries stricken by the coronavirus outbreak.In a statement, it says:
The IMF is making available about $50 billion through its rapid-disbursing emergencyfinancing facilities for low income and emerging market countries of which $10 billion is available at zero interest for the poorest members through the Rapid Credit Facility.
I urge the administration to sort access to the latter at zero interest conditional to favourable terms with the current debt portfolio. The cash could be used to shore up the economy protectlocal businesses from collapse, saving jobs. It is understood the administration already has put aside D500 million in Corona Corona fight. That is admirable but is it resolved to explain to parliament (and public) how that extra cash came about? Overnight, I was made aware that former minister of finance, Sidi Sanneh, has written to Mambury Njie, the finance minister, seeking clarity on the origins of the aforesaid figure I hope the ministry possesses the courtesy to respond!
It is worth remembering that former president Jammeh seized power at a time of a strong dalasi, low inflation, low debt economy fromthe fiscally considerate Jawara government.That regime then succeeded in destroying fiscal discipline in place against no-frills spending spree invitation to predatory loan sharks.
President Barrow, to his credit, inherited arigged economy with GDP/Debt ratio of some 107%. But lack of fiscal maturity has seen the administration shoot the deficit cliff wide open to a whopping 120% GDP. The disaster, in my view, was the failure to map out a vision to reshape economic revival post-dictatorship. Then step in Mambury Njie, an appointment Id cheered on account of technocratic baggage. Yes, inflation was brought undercheck, economic growth all but steady. Of late however, the minister has appears to prove his detractors right who protested his appointment. He needs to wean off the Gambia from debt addiction and for parliament to mobilise on debt ceiling legislation, as argued by the economist, Nyang Njie.
I will say this: GDP growth rate projected for 2020 are obsolete therefore needs to be revised. For a start, Gambia is not amanufacturing nation nor an export oriented economy to mitigate balance of paymentdeficit. The country is stuck poor with a sizeable trade imbalance to Senegal, China, India, and every other country it does commerce. That cannot be right, notsustainable either concern the minister of trade has failed to address!!!
The administration should take its case to the IMF & World Bank demand incapable of fulfilling terms of the loan. I recogniseexcellent efforts by the Commonwealth helping the finance ministry to better coordinate the vast expansive cadre of loan sharks. The technical component and skillstransfer will be of tremendous value long term if standards are maintained in line withprocedures.
The financial year 2020, the country will pay in excess of D4 billion in debt repayment. Given the high rate of poverty and unemployment, having that money sustainable and accountable invest incommercial rice value chain, surely, will redress lots of ills in society. While one admitnot versed in economic reading or technicalities of the sort, events on the ground and common sense inform this argument. For God sake here is a country which a river runsthrough it, blessed with fresh water lakes yet successive govts cannot designate all year round mechanised commercial farm ventures. What upset most is see the country reduced to a beggar nation. That, I have a fundamental issue with. The leadership must address the rate of poverty in the country, uphold rule of law and ethics in governance.
Gibril Saine
See the rest here:
D4 Billion Debt Repayment in the face of a Pandemic - Freedom Newspaper
- Freedom Caucus: The Fight Club of Congress - The Christian Science Monitor - September 29th, 2023 [September 29th, 2023]
- History shows a better strategy than shutdown for reducing the deficit - MinnPost - September 29th, 2023 [September 29th, 2023]
- Haake: For the freedom caucus, chaos is the point - Chicago Tribune - September 29th, 2023 [September 29th, 2023]
- Appeals court sets hearing date on Missouri abortion rights initiative ... - Missouri Independent - September 29th, 2023 [September 29th, 2023]
- Things to Know About the Billionaire Card - a Diamond-Encrusted ... - CEOWORLD magazine - September 29th, 2023 [September 29th, 2023]
- Report on Countries that are Candidates for Millennium Challenge ... - Millennium Challenge Corporation - August 28th, 2023 [August 28th, 2023]
- The Freedom Caucus' shutdown threat recalls tactics of past House ... - NPR - August 28th, 2023 [August 28th, 2023]
- Opinion | Joe Biden op-ed: 60 years after March on Washington, we ... - The Washington Post - August 28th, 2023 [August 28th, 2023]
- Universal Basic Income: Fiscal fantasy or AI necessity? - talkbusiness.net - August 28th, 2023 [August 28th, 2023]
- Hurtling toward a fiscal cliff - POLITICO - POLITICO - August 28th, 2023 [August 28th, 2023]
- Governor Glenn Youngkin - Virginia Governor Ralph Northam - Proclamation - August 28th, 2023 [August 28th, 2023]
- New Zealand - The Heritage Foundation - January 4th, 2023 [January 4th, 2023]
- Singapore Economy: Population, GDP, Inflation, Business, Trade, FDI ... - January 4th, 2023 [January 4th, 2023]
- Mexico Economy: Facts, Population, GDP, Corruption, Business, Trade ... - December 12th, 2022 [December 12th, 2022]
- Economic liberalism - Wikipedia - November 7th, 2022 [November 7th, 2022]
- Don't ask, don't tell - Wikipedia - October 15th, 2022 [October 15th, 2022]
- In first debate, Healey and Diehl clash over the economy, abortion and Trump - WBUR News - October 15th, 2022 [October 15th, 2022]
- Election 2022: What to know about California propositions - Visalia Times-Delta and Tulare Advance-Register - October 15th, 2022 [October 15th, 2022]
- Vice President Kamala Harris calls on Texans to protect reproductive and voting rights during Austin visit - 25 News KXXV and KRHD - October 15th, 2022 [October 15th, 2022]
- How Republicans in the Rio Grande Valley are using faith to draw in Latino voters - CBS News - October 15th, 2022 [October 15th, 2022]
- Letter to the editor: Pierce will work for values that matter to Senate District 25 - Press Herald - September 20th, 2022 [September 20th, 2022]
- Letter to the editor: Left needs heads examined - Washington Times - September 20th, 2022 [September 20th, 2022]
- Book Banning, Curriculum Restrictions, and the Politicization of U.S. Schools - Center For American Progress - September 20th, 2022 [September 20th, 2022]
- Judge considers halting enforcement of Indiana's near-total abortion ban - The Times of Northwest Indiana - September 20th, 2022 [September 20th, 2022]
- Texas Youth Summit draws conservative to plot the culture war - The Texas Tribune - September 20th, 2022 [September 20th, 2022]
- The Weight of Trump - The Atlantic - September 20th, 2022 [September 20th, 2022]
- Tanzania and Zambia want to upgrade the 'Uhuru Railway' but can they? - The Conversation Indonesia - September 20th, 2022 [September 20th, 2022]
- Power games: Plans to shift to a centralised market in power sector must take into account concerns of all stakeholders - The Indian Express - September 20th, 2022 [September 20th, 2022]
- Inside the Academic-Freedom Crisis That Roiled Florida's Flagship - The Chronicle of Higher Education - September 7th, 2022 [September 7th, 2022]
- Liz Trusss energy price cap handout will put her talent for U-turns to the test - The Guardian - September 7th, 2022 [September 7th, 2022]
- FM stresses joint Arab action to overcome regional crises - Jordan Times - September 7th, 2022 [September 7th, 2022]
- The contract of Nigerian citizenship and diaspora voting - Guardian Nigeria - September 7th, 2022 [September 7th, 2022]
- Study ranks Midland as top economic freedom area in Michigan - The Center Square - September 6th, 2022 [September 6th, 2022]
- Another Shocking Decline in Life Expectancy | The Fiscal Times - The Fiscal Times - September 6th, 2022 [September 6th, 2022]
- Liz Truss Has Been Elected As The New Prime Minister Of The United Kingdom. Replace Boris Johnson - Nation World News - September 6th, 2022 [September 6th, 2022]
- Why the Left Is Learning to Love the Military - The Atlantic - September 6th, 2022 [September 6th, 2022]
- Millions of dollars spent secretly at B.C. Legislature - theBreaker - theBreaker - September 6th, 2022 [September 6th, 2022]
- Economy forecast to grow by 7-7.5% in current fiscal Times of India - English Bharat Times - September 6th, 2022 [September 6th, 2022]
- The Union Government Is Arbitrarily Squeezing States Fiscal Freedom To Borrow - The Wire - August 15th, 2022 [August 15th, 2022]
- House Freedom Caucus calls on McCarthy, McConnell to reject 'lame duck' spending this fall - Fox News - August 15th, 2022 [August 15th, 2022]
- JAGs 7th and most ambitious season yet is titled 'The Freedom Practice' - Vermont Biz - August 15th, 2022 [August 15th, 2022]
- Why is the Michigan Medicine nurses' union abridging freedom of speech? - WSWS - August 15th, 2022 [August 15th, 2022]
- Board of Elections certifies recall effort to oust East Cleveland's mayor - News 5 Cleveland WEWS - August 15th, 2022 [August 15th, 2022]
- Bangabandhu's thoughts on economic freedom are still relevant - The Financial Express - August 15th, 2022 [August 15th, 2022]
- Overview: A Year of Taliban Rule in Afghanistan - Voice of America - VOA News - August 15th, 2022 [August 15th, 2022]
- Rochester enters the era of the $250,000 police officer - Rochester City Newspaper - August 15th, 2022 [August 15th, 2022]
- India aims to be developed nation in 25 years: Modi - Gulf Times - August 15th, 2022 [August 15th, 2022]
- EDITORIAL: Welcome to new thinker on the block - Coeur d'Alene Press - August 15th, 2022 [August 15th, 2022]
- Letters to the editor for Sunday, August 14, 2022 - News-Press - August 15th, 2022 [August 15th, 2022]
- The Serious Lack of Good Governance and Economic Freedom: Root Causes of Sri Lanka's Ongoing Turmoil - Heritage.org - July 27th, 2022 [July 27th, 2022]
- The FOIA backlog continued to grow last year - Federal News Network - July 27th, 2022 [July 27th, 2022]
- More money rolling into state's casinos, less tax being collected The Daily Gazette - The Daily Gazette - July 27th, 2022 [July 27th, 2022]
- EDITORIAL: Fentanyl, death by the dose - Washington Times - July 27th, 2022 [July 27th, 2022]
- Liz Truss's tax cuts are not inflationary - The Telegraph - July 27th, 2022 [July 27th, 2022]
- The UN wants to educate children it will succeed only if it feeds them first - The Guardian - July 27th, 2022 [July 27th, 2022]
- Sunburn The morning read of what's hot in Florida politics 7.27.22 - Florida Politics - July 27th, 2022 [July 27th, 2022]
- A first look at the medium-term fiscal program - BusinessWorld Online - July 19th, 2022 [July 19th, 2022]
- Financial Giants Reject West Virginia's Claims That They're Boycotting Fossil Fuels - The Epoch Times - July 19th, 2022 [July 19th, 2022]
- Five Waldo County towns ready to vote on broadband - Republican Journal - July 19th, 2022 [July 19th, 2022]
- Indian Navy expected to spend 70 pc of capital budget in domestic procurement this fiscal: Rajnath Singh - ThePrint - July 19th, 2022 [July 19th, 2022]
- NGO letter opposing T.42 amendments in appropriations - Government Accountability Project - July 19th, 2022 [July 19th, 2022]
- Digital services provided by foreign firms to be taxed from tomorrow - The Kathmandu Post - July 19th, 2022 [July 19th, 2022]
- Ayushman health ID card: A need for fine tuning! - Times of India - July 19th, 2022 [July 19th, 2022]
- Windfall tax on crude goes against incentive of more pricing freedom - The Financial Express - July 9th, 2022 [July 9th, 2022]
- Diversity, equity and inclusion update: June 2022 issue | CU Boulder Today - CU Boulder Today - June 29th, 2022 [June 29th, 2022]
- Menendez, Schiff alarmed that Biden again approves US military aid to Azerbaijan - Armenian Weekly - June 29th, 2022 [June 29th, 2022]
- Egypt is cozying up to Russia. It's time for the US to step in. - Atlantic Council - June 29th, 2022 [June 29th, 2022]
- PM to say to G7 leaders: We must keep up our resolve on Ukraine - GOV.UK - June 29th, 2022 [June 29th, 2022]
- Where have all the Christians gone? | News, Sports, Jobs - Williamsport Sun-Gazette - Williamsport Sun-Gazette - June 29th, 2022 [June 29th, 2022]
- President Biden waives Section 907 restrictions on US aid to Azerbaijan - Armenian Weekly - June 24th, 2022 [June 24th, 2022]
- Senate retirement bill benefits wealthy Americans - The Hill - June 24th, 2022 [June 24th, 2022]
- Ambassador Kierscht Interview with The Key - US Embassy in Mauritania - USEmbassy.gov - June 24th, 2022 [June 24th, 2022]
- Roe v. Wade overturned: How will it affect abortion access in Indiana - The Herald-Times - June 24th, 2022 [June 24th, 2022]
- Constricted devolution of fiscal power - The Kathmandu Post - June 22nd, 2022 [June 22nd, 2022]
- Public office and accountability issues in Nigeria - Daily Trust - June 22nd, 2022 [June 22nd, 2022]
- Shaheen, Portman Participate in Discussion Hosted by Dartmouth on Russia's Unprovoked Invasion of Ukraine | US Senator Jeanne Shaheen of New Hampshire... - June 22nd, 2022 [June 22nd, 2022]
- Congress Ignores Pressing National Business While It Obsesses on Jan. 6 - The Epoch Times - June 11th, 2022 [June 11th, 2022]
- Ukraine Economy: Population, GDP, Inflation, Business, Trade, FDI ... - June 11th, 2022 [June 11th, 2022]
- How would India fare on a modified misery index? Better than US & UK, worse than most others - ThePrint - June 11th, 2022 [June 11th, 2022]
- "Don't Want RBI To Become Extension Of Government": Ex CEA Arvind Subramanian - NDTV Profit - June 11th, 2022 [June 11th, 2022]