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Momodou
Denmark
11682 Posts |
 Posted - 20 Jun 2011 : 14:29:19
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Sidia Says Loans Are Bad For Our Economy
Monday, June 20, 2011
 Highly indebted seemingly loan-dependent Gambia government has been warned that the loans that it is consuming are not good for the country’s economy.
“It seems some people are happy taking so many loans, but these loans are to be paid with interest,” the Wuli West National Assembly member, Sidia Jatta said on Tuesday.
The veteran opposition politician’s remarks came at the ratification of four loan agreements totaled US$29 million at the National Assembly complex.
The loans
The IDF Grant of US$495000 is meant for civil service reform. Overall, the agreement has been hailed by the ruling APRC party dominated parliament, though concerns were raised over the need for proper management and monitoring.
The OPEC Fund for International Development loan of US$5m and the Arab Bank for Economic Development in Africa loan of US$7m are both for the University of The Gambia project.
The ECOWAS Bank for Investment and Development (EBID) loan of US$495, 000.00 is for the partial financing of the reconstruction and upgrading of the Mandinaba-Soma road.
Black president not enough
Meanwhile, the ratification of the loans came barely two weeks after the International Monetary Fund (IMF) voiced-out concerns over Gambia’s rising debt stock, which poses ‘significant challenges to the country’s anticipated growth’.
The debt on domestic front, alone, stood at over D20 billion as at December 2010. The external debt level is hardly revealed.
Although the former Finance minister who presented this year’s budget had said, The Gambia cannot avoid borrowing, Sidia holds a different view.
“The country can do away with loans when the resources are properly invested,” the outspoken politician said.
He mentioned that the River Gambia is full of resources that can be used to create development and employment.
He continued: “Independence does not only mean having a black president and flying on the car bonnet. Independence means to be doing things for ourselves with our resources and become master of our own destiny.”
Source: Dailynews
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A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12306 Posts |
Posted - 20 Jun 2011 : 18:59:51
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“Independence does not only mean having a black president and flying on the car bonnet. Independence means to be doing things for ourselves with our resources and become master of our own destiny.”
This old Pa has got the point,but the chances of a more sensible fiscal policy in the near future are slim,the countries that supply the loans must realise that they havn't a chance of getting their money repaid on time, the loan will be renegociated and get bigger and bigger,just common sense,I coined a saying " If you want to give money to a Gambian great,if you want to give a loan to a Gambian don't"
Common sense for sure:
The country can do away with loans when the resources are properly invested,” the outspoken politician said.
He mentioned that the River Gambia is full of resources that can be used to create development and employment.
He continued: “Independence does not only mean having a black president and flying on the car bonnet. Independence means to be doing things for ourselves with our resources and become master of our own destiny.”
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna
United Kingdom
1382 Posts |
Posted - 20 Jun 2011 : 19:58:27
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I don't think loans are necessarily bad. It depends on how you use them. Even the United States is taking loan from China.
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I do not oppose unity but I oppose dumb union. |
Edited by - Nyarikangbanna on 20 Jun 2011 19:59:54 |
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toubab1020
12306 Posts |
Posted - 20 Jun 2011 : 21:39:38
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Hardly surprising as China has a avast amount of $ that they don't know how to utilise to make even more $s  |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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kobo
United Kingdom
7765 Posts |
Posted - 20 Jun 2011 : 22:59:17
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IS IT DIFFERENT FROM SIDIA'S AND IMF CONCERNS? YOU DON'T LIKE OUR "BOROM BAHA" IN FULL GEAR IF IT WAS "BAHA KHAFTAAN" YOU WOULD PREFER TO SALUTE THAN BEING CRITICAL |
Edited by - kobo on 20 Jun 2011 23:50:52 |
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Janyanfara
Tanzania
1350 Posts |
Posted - 21 Jun 2011 : 01:17:55
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| who is borom baha? ha ha ha ha ha Kobo you need to see your GP really I mean really. Anything UDP members write hurts you.I only hope and pray you don't get a heart attack because UDP and its members like Nyari and every one have come to stay |
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kobo
United Kingdom
7765 Posts |
Posted - 23 Jun 2011 : 00:24:44
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SIDIA JATTA'S REMARKS ARE TO MODERATE THE POLICIES AND/OR INFLUENCE POLICY DECISIONS AND RIGHTFULLY PROPER MANAGEMENT OF THE ECONOMY ONLY!
"IT DEPENDS ON HOW YOU USE THEM" DID NOT HELP CLEAR AMERICA'S DEBT TO CHINA WHICH STANDS ACCORDING TO SOURCES;
1. "Lets put it this way ... every American Citizen owes China $35,000 US dollars and now times that by the number of citizens In america .. hope that helped?"
2. "They own $1.1 trillion in US Treasury securities"
SO FOR THOSE TRYING TO SCORE CHEAP POLITICAL POINTS ON SIDIA JATTA, YOU HAVE LOTS OF INFORMATION TO DIGEST FROM THE EXPERTS FROM THESE;
1. Drowned in debt! Gambia Government Must Be Stopped
2. Statement by an IMF Staff Visit to The Gambia
3. Domestic Debt Climbs Up, Dalasi Drops
4. WAIFEM course discusses medium-term debt strategy
UNDER 4; "According to Governor Colley, maintenance of debt at sustainable levels while achieving growth is one of the most critical issues of overarching importance to public financial management in developing countries." |
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toubab1020
12306 Posts |
Posted - 10 Sep 2011 : 13:54:59
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It is obvious that if you take out a loan then you are not planning for the future,we all know that money makes the world go around and its great to have BUT what is not realised by MANY is that the debt has to be repaid in the future,and that even if you can afford the interest that is charged on the loan,can you ever pay back that loan? If the answer to that is NO then a loan should not be taken.
It appears to me that MANY African countries look on a loan as a gift and not something that will ever have to be paid back and as such is considered by those taking the loan as a charitable donation,is that good sense ? The answer is confusing ,if the loan is never to be repaid then that's free money,Any sensible lender will look at the history of the person or country taking the loan and make up their own mind as to the reliability of the person or country requesting a loan,if the answer to those enquiries reveal that the person or country is not reliable then the loan should not be given as the commercial risk is too high.
There is another problem and that is that money loaned to countries by other countries generally comes from the taxes of the people of the lending country,politicians can take risks with that money as justification of loans to developing countries is easy to justify,for instance in the future trade links may develop on both sides,votes in international assemblies MAY be able to swayed due to the links forged between countries. |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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toubab1020
12306 Posts |
Posted - 12 Sep 2011 : 12:46:54
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Whatever you say minister must be right.
http://dailynews.gm/africa/gambia/article/finance-minister-denies-debt-distress-claims
Finance Minister Denies Debt Distress Claims
Minister Mambury Njie
Friday, September 09, 2011
The Gambia’s minister for Finance and Economic Affairs, Mr Mambury Njie has denied reports that the country is at high risk of debt distress.
He said, Gambia’s profile, if anything, is not at a debt distress level, contrary to the revelation made by a study report on the establishment of national civil society education fund, which states that The Gambia is still classified as high risk of debt distress even though the country received extensive debt relief under the Highly Indebted Poor Countries and Multilateral Debt Relief Initiatives in 2007.
“The Gambia is not in any way at a debt distress level,” said Minister Mambury Njie. “I think if anything our recent CPIA rating has improved in a major variable and that is the proper management of the economy.”
The CPIA - Country Policy and Institutional Assessment - rates countries against a set of 16 criteria grouped in four clusters which are: economic management, structural policies, policies for social inclusion, and equity, and public sector management and institutions.
The finance minister said: “Whereas you have the average resources allocations increase for developing countries to an average of 18 - 20%, The Gambia, specifically, was able to realise almost a 100% in terms of increase in resources and these are resources that are either grants or at concessional level.”
Mr Njie explained that the government’s debt policy continues to attach importance to grants and concessionary financing, and prudent borrowing for investment.
“I am sure you are also aware that we are paying almost 20 – 25% of our budget to interest on domestic debt,” he disclosed.
“What this has revealed is that we always start [borrowing] domestically before we go international because at local level is lower rate and less problem.”
He said at the level of the government, they are conscious of the fact that The Gambia is not endowed with natural resources. “So whatever we do, we have to burn the midnight candle to make sure that our [loan] negotiations are to our advantage,” he says. The amount that goes to interest on international debt, which is higher, is not revealed.
However, the study report on the establishment of national civil society education fund indicates that as at the end of 2009, external debt stood at 34 per cent of country Gross Domestic Product (GDP) while total public sector debt was 54 per cent of GDP.
Half of country’s population in at poverty
The report also indicates that more than 50% of the population is living in poverty even though there has been a decline between the years of 2003 and 2008 from 59% to 56%.
It stated that in order to address this high rate of poverty, the government intends to shift the focus of its poverty reduction strategy towards increasing economic growth and employment as well as stepping up infrastructure investment.
To this end, the report indicates, the Poverty Reduction Strategy Paper II (2007 to 2011) will be replaced by the Programme for Accelerated Growth and Employment (PAGE).
“The elimination of poverty and progress towards sustainable development can only be realised with increased and improved levels of education,” the study reveals.
Author: Lamin Jahateh
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 12 Sep 2011 12:47:44 |
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