 |
|
| Author |
 Topic  |
|
|
toubab1020
12314 Posts |
 Posted - 20 Mar 2011 : 20:47:11
|
http://observer.gm/africa/gambia/article/gambias-basic-fiscal-balance-slipped-into-a-substantial-deficit-says-imf-mission-chief
Gambia’s basic fiscal balance slipped into a substantial deficit Says IMF mission chief
Africa » Gambia
Friday, March 18, 2011
The International Monetary Fund (IMF) mission chief to The Gambia has announced a rather declining performance of the country’s financial fiscal balance that occurred during the final quarter of 2010, leading to a large issuance of T-bills late in the year.
David Dunn made the disclosure Thursday at a press briefing held the Ministry of Finance and Economic Affairs at the Quadrangle in Banjul. The IMF official was the head of a team that visited the country between March 4-17, 2011 to review the recent economic developments and discuss with the government economic policy initiatives planned for this year.
The team earlier met the Gambian leader, His Excellency Sheikh Professor Alhaji Dr Yahya Jammeh; minister of Finance and Economic Affairs, Mambury Njie; the governor of the Central Bank of The Gambia Amadou Colley; and other senior officials of the bank. According to Dunn, the decline made the impact on yields to also go dampened, due to strong demand for government paper by commercial banks arising from the end-year increase in the minimum capital requirement. However, he announced a resounding performance in the official international reserves, which he said remained at comfortable level, while the structural reform agenda continues to progress steadily.
He stated that the country still faces a heavy debt burden, with its interest consuming about 20 percent of government revenues in 2010. He explained that most of this debt was paid on the large stock of outstanding T-bills. He further explained that the authorities placed a high priority on curbing the government’s domestic borrowing. Dunn further disclosed that the preliminary data indicated that the Gambia economy continued to perform well in 2010, despite lingering effects of the global economic crisis on tourism receipts. Led by another strong expansion in agriculture, he said real gross domestic product (GDP) growth is estimated to have grown by about 5½ percent, with inflation edging up in 2010, mainly because of the rising international food and fuel prices. He hinted that the economic outlook for 2011 is generally positive, especially if hints of improvements in the tourism sector develop further.
“The Gambian authorities are making good progress with their preparations of the Programme for Accelerated Growth and Employment (PAGE) which will succeed the current poverty reduction strategy beginning in 2012,” he said, adding that PAGE will emphasise government support for agriculture and infrastructure investment. He stressed that financing of the PAGE will pose a significant challenge in light of the country’s already heavy debt burden and falling tax revenues (relative to GDP).
Dunn, while noting that the authorities plan to seek donor support for the PAGE, advised that other avenues for private sector participation should also be explored. “The current arrangement under the IMF’s Extended Credit Facility will expire at the end of this month. An IMF team will return to The Gambia later in the year to discuss a possible new credit arrangement,” he added.
Author: by Amadou Jallow
|
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
|
|
| |
Topic |
|
|
|
| Bantaba in Cyberspace |
© 2005-2024 Nijii |
 |
|
|
Topic Locked
