Malawi public debt worrisome, says Finance minister Mwanamvekha

Malawi’s rising public debt –combination of domestic and foreign–has been described by Minister of Finance, Economic Planning and Development Joseph Mwanamvekha as worrisome.

Mwanamvekha: Government will ensure prudent borrowing

The debt stock, according to Annual Debt Report by the Ministry of Finance, Economic Planning and Development, jumped to K3.7 trillion or 65 percent of GDP during the 2018/19 financial year from K3.1 trillion recorded at the end of the previous year.

The Malawi debt stock comprises K1.7 trillion external debt and K1.97 trillion domestic debt.

Finance minister Mwanamvekha said in his 2020/21 National Budget Statement last Friday said that the rising public debt is a major worry for the Malawi Government.

“Its impact on budget implementation is enormous as interest payment is a statutory expenditure that can never be deferred or cut in the event of resource constraints,” said Mwanamvekha.

He highlighted that the high debt repayment bill is on account of Treasury Securities which were issued between 2014/2015 and 2017/2018 financial years to clear huge government arrears that were accumulated between 2012 and 2014.

“Government is however, fully committed to tame the accumulation of domestic debt by prioritizing spending and strengthening its debt management function,” said Mwanamvekha.

He added that government will ensure “prudent borrowing” and seek to contract external loans on concessional terms where possible.

Economics Association of Malawi (Ecama) statistics show that debt to gross domestic product (GDP) ratio has a maximum threshold of 50 percent with 20 percent being domestic debt and 30 percent foreign debt.

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Banda
Banda
8 months ago

Who do we have to thank for the Public Debt. Eish its DPP Governments starting with Bingu who almost Bankrupt the Country. VOTE CHANGE

Malawi walero
Malawi walero
8 months ago

Very clear akunena pompa yapa kuti amabwedza zingongole zomwe zinatengedwa btwn 2012-2014. Nde iyi ndi nthawi yomwe amalamulira ndi madam CASHGATE.

Banda
Banda
8 months ago

Will be found that you have NOT LEFT MUCH for the NEW Government

Martin
Martin
8 months ago

Then why promising private football clubs top of the range stadiums when you can’t pay debts, on other hand you continue laying stones for developments which are nothing but a nightmare? Is that what your bootlickers are calling developmental and visionary leadership?

Good critic Mtamba
Good critic Mtamba
8 months ago

So u telling us all that debts the money u been sharing by yourself then the malawi become dèbts country mamamamama pls all you on top officials feel sorry for the poor bring that money and pay those debts

Mangochi Kabwafu
Mangochi Kabwafu
8 months ago

Where has all the money gone? You will pay back as from next week. Dzimbava za dpp.

vavlov
vavlov
8 months ago

Has this minister just woken up from slumber? they have been stealing the money, living ravish-life, paying bribes, now he is telling Malawians his worries about debt, really? For the first time, Malawi should make corrupt government officials and ministers fully account for their theft. This should be a priority in cleaning the government.

monosile
monosile
8 months ago

Why worrisome, you will pay back soon all the public money which you have been pocketing.You will not go scot free.

Nabetha
Nabetha
8 months ago
Reply to  monosile

WHY NOT IF THE PURSE IS BEING TAMPERED WITH WILLY NILLY BY SO CALLED ‘LEADERS- LOOTERS’

Destroyer of liars
8 months ago

We are heading into a situation where debt stock will be equal to GDP which will result in a situation only economists can explain.

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