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jambo
3300 Posts |
 Posted - 22 Dec 2007 : 11:26:58
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http://allafrica.com/stories/200712210540.html
Raleigh, North Carolina)
20 December 2007 Posted to the web 21 December 2007
The World Bank and the International Monetary Fund said the impoverished nation of The Gambia is now eligible for further
debt relief from the IMF, IDA and the African Development Fund (AFDF) under the Multilateral Debt Relief Initiative known as (MDRI.) World Bank also says the "Total debt service savings under the MDRI will amount to approximately US$373.5 million in nominal terms over the next 43 years."
According to the World Bank "As a result of reaching HIPC completion point, The Gambia is expected to receive in total the equivalent of US$514 million in nominal debt relief under both the Enhanced HIPC Initiative and the MDRI, on principal as well as interest payments."
The Bank in a press release issued said "The World Bank's IDA committed itself to provide assistance of US$35.9 million in nominal terms, of which US$9.1 million has already been delivered. Under the MDRI, the World Bank's IDA will cancel a debt stock of approximately US$183 million of debt disbursed before end-2003 and still outstanding on December 31, 2007, corresponding to a total of approximately US$202 million in debt service savings."
The World Bank's International Development Association (IDA) and
the International Monetary Fund (IMF) continued the statement
"have agreed that The Gambia has made sufficient progress and
taken the necessary steps to reach its completion point under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The Gambia becomes the 23rd country to reach the completion point
under the Initiative.Debt relief to The Gambia under the Enhanced HIPC Initiative amounts to US$66.6 million in net present value
(NPV) terms
The IMF committed itself to provide MDRI/HIPC debt relief
totaling SDR 9.4 million (US$14.2 million). Under the MDRI,
the IMF will provide 100 percent debt relief on obligations
incurred before end-2004 and still outstanding at the completion point.
To reach the completion point, The Gambia met a number of
triggers aimed at maintaining macroeconomic stability, ensuring commitment to the national poverty strategy, strengthening
public expenditure management, improving the poverty database
and monitoring capacity, raising the quality and coverage of education, improving health outcomes, and promoting development
of the private sector. In addition, the authorities have taken
steps to revitalize the groundnut sector through liberalization reforms.
Madani Tall, World Bank Country Director for The Gambia
"The Gambia has made good progress toward securing macroeconomic stability and has established a good track record of policy implementation in 2007,"
noted that "in achieving the HIPC completion point, The Gambia significantly lowers its debt burden and effectively frees up resources to redeploy towards growth and poverty reduction.
In order to achieve optimum results," he added, "The Gambia
must take this opportunity to ensure that future borrowing is prudently managed in order to prevent a reoccurrence of debt distress, and to continue implementing reforms outlined in the government's groundnut sector roadmap." said Tsidi Tsikata, IMF Mission Chief for The Gambia. "Looking forward, a key challenge
is to maintain a sustainable external and domestic debt position through careful borrowing and prudent fiscal policy.
Debt relief at completion point under the enhanced HIPC Initiative and MDRI is an important milestone for The Gambia toward debt sustainability while providing more resources for poverty reduction and the attainment of the Millennium Development Goals."
ANNEX
The HIPC Initiative
In 1996, the World Bank and IMF launched the HIPC Initiative to create a framework in which all creditors, including multilateral creditors, can provide debt relief to the world's poorest and most heavily indebted countries, and thereby reduce the constraints on economic growth and poverty reduction imposed by the debt-service burdens in these countries. The Initiative was modified in 1999
to provide three key enhancements:
Deeper and Broader Relief. Faster Relief.
Stronger Link Between Debt Relief and Poverty Reduction.
To date, 32 HIPC countries have reached their decision points, of which 23 (including The Gambia) have reached completion point.
Relevant Links West Africa Capital Flows Debt Gambia
International Organizations and Africa Sustainable Development
The MDRI
Although the MDRI is separate from the HIPC Initiative, the
two are closely linked operationally. Under the MDRI, three multilateral institutions - the World Bank's International Development Association, the International Monetary Fund,
and the African Development Fund - provide 100 percent debt
relief on eligible debts to countries having reached the HIPC completion point.
At the July 2005 G8 Summit in Gleneagles, Scotland, G8 leaders pledged to cancel the debt of the world's most indebted countries, most of which are located in Africa. The aim of the Multilateral
Debt Relief Initiative (MDRI) is to reduce further the debt of
HIPCs and provide additional resources to help them reach the Millennium Development Goals (MDGs).Freed resources were to be
used to support poverty reduction strategies developed by national governments through a broad consultative process. A number of creditors began to provide interim debt relief immediately at the "decision point." Also, the new framework permitted countries
to reach the "completion point" faster; and External debt
thresholds were lowered from the original framework. As a result, more countries have become eligible for debt relief and some countries have become eligible for greater relief;[1],
equivalent to a 27.2 percent NPV reduction of The Gambia's debt
after traditional debt relief. The US$66.6 million in reduced
debt is attributable to all creditors.
Total assistance under the Enhanced HIPC Initiative is estimated to correspond to approximately US$140 million in nominal terms."[3] Unlike the HIPC Initiative, the MDRI is not comprehensive in its creditor coverage. It does not involve participation of official bilateral or commercial creditors, or of multilateral institutions other than the above mentioned three.
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Janyanfara
Tanzania
1350 Posts |
Posted - 22 Dec 2007 : 13:18:43
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A move in the right direction.
OTHERWISE WE SHALL NEVER BE ABLE TO PAY OUR DEBT IN A TRILLION YEARS.
The IMF and the World Bank should wipe out all our debt with conditions too.Because now a days corruption is not only rampant, it is beyond imagination.Daylight robbery by the state of taxpayer's money is no secret.
I think Jammeh supporters are jokers just to wind people up. Because any genuine right thinking Gambian would sometime raise an eye brow over the way and manner this Man is wasting our resources on fruitless parties, wrestlings and comemorations that are of no significant to nation building while the Gambia, major high way remains unplyable.Since Jawara govement constructed the Brikama Basse Road, and Jammeh came boasting of his dream vission Kanilai kanilai bull****.
when the AFPRC came to power forcefully, the road from Brikama to Some was atleast in fairely good condition.The road was dameged by them and up to date, its getting from bad to unthinkable of travelling through.
Our developmewnt partners should come and suppervise their own projects now because if they really and genuinely want to help us, they should allow their funds into the hands of the corrupt officials.Once they oversee every thing, those thieves would have nothing to steal. |
Edited by - Janyanfara on 22 Dec 2007 13:24:25 |
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MADIBA
United Kingdom
1275 Posts |
Posted - 22 Dec 2007 : 13:43:19
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quote:
Originally posted by Janyanfara
...when the AFPRC came to power forcefully, the road from Brikama to Some was atleast in fairely good condition.The road was dameged by them and up to date, its getting from bad to unthinkable of travelling through.
Our developmewnt partners should come and suppervise their own projects now because if they really and genuinely want to help us, they should allow their funds into the hands of the corrupt officials.Once they oversee every thing, those thieves would have nothing to steal.
Janyafara,
The APRC are not doing ok, that i and many here know that. But wat beats my imagination in your thread, is the phrase highlihted in red. Are you serious? If yes can you explain how they damaged the road. Did they use heavy attillery to bombard the road becos Jawara built it? |
madiss |
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Janyanfara
Tanzania
1350 Posts |
Posted - 22 Dec 2007 : 15:24:10
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No Madiba the wise one,They did not bommed the road rather they took graders and lied to the people that they were going to rebuild the road graded all the tar and cement from the road promising to add more gravel but that was it.Still when you travel the road, you will notice a high mountain of bituminous gravel at Madinaba which has been pilled there for a ages now even babies born then are now big boys and girl almost ready to become men and women.
Wiseone, thats why I said they distroyed the roads and did nothing to rebuild it.They still blame the contractors but as a government why not give the contract to another one?How about the road from Kanfenda to Kanilai?was it not part of the same contract? why was that one completed and the major one forgotten? Jammeh is on quote as saying those who did not support him would never benefit from any government project and he did say to the people of kiang thjat crocodiles would lay their eggs on the roads if they expect him to make it for them because they did not want him.They should instead wait for their choice of government to come and build a road for them.Madiba did you hear that? |
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MADIBA
United Kingdom
1275 Posts |
Posted - 22 Dec 2007 : 20:49:08
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Janyanfara, Atleast you clarified. However, i dnt think its gov't pleasure to leave that road like that. I think if they have the money ready, work would resume. Does it make sense for Jammeh to leave that road like that, knowing fully well that he and his supporters who could be Kiangkas or non-kiangkas would travel on that road? Remember going to Kanilai, he must pass thru Mandinaba etc, his supporters, in LRR, CRR, URR and some parts of NBR must still pass thru as well.
If Jammeh has said wat you alluded to, then thats very unfortunate for a President to speak in such a childish manner. God help The Gambia. |
madiss |
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Santanfara
3460 Posts |
Posted - 24 Dec 2007 : 11:55:43
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Enterprise Development
With Sarjo Bayang
23-Dec-07
We have once warned that our national economy is a shared enterprise. This is more appropriate at a time when we are told a heavy debt that crippled our economic advancement has now been cancelled. Therefore our government of the day is required to share the best information on how this translates to enhancing livelihood of a deprived population. Sarjo Bayang suggests that government of Gambia tells the people in whose name they became heavily indebted what this twist of events means. He demands a National Balance Sheet and thinks that will help all of us relate to the new event of debt relief for which Gambia qualified. The rest of what Mr Bayang thinks about the whole issue is enough to stimulate public debate.
Something more sinister about declaration of debt relief for Heavily Indebted Poor Countries (HIPC) is the deep silence on the side of governments that stand to benefit. This includes Gambia government. The people have a right to know from a government that represents them before international finance capital providers concerning what has been agreed and how cash flow is regulated according to projected target of operations. People want to know if the debts acquired have been serviced at all and at what ratio in terms of development targets. Even if the kind providers of international finance capital finally decided to write-off all that is owed to them, there is still good occasion for home governments to surrender the National Balance Sheet.
There is no true relief unless the people in whose name the funds were borrowed fully accept that the Balance Sheet is true and fair account of money acquired in their good name. When will the government of Gambia take the debate at the next higher level by inviting all stakeholders to review the National Balance sheet?
People are not only eager. They are concerned that without the government sharing deep secrets about our shared financial big picture, it is not clear what is covered. It all sounds quite rejoicing to hear news about a heavy debt graced with write off. But how do we get to the level of acquiring heavy debts and then deteriorating at the step depth of bankruptcy? It helps the ordinary citizen to reflect on the situation more detailed than the version we hear from national radio and television.
Reasons for borrowing usually rest on the premises of programs and projected development targets. To begin planning with budgets without first conceiving clearly achievable targets is an aspect of deluded financial grapping. There is no economic wisdom for a government to grow the wild ambition of building schools and hospitals without proper feasibility studies and sound financial and related returns.
Ordinarily people borrow based on the results of a needs assessment. Therefore governments too are expected to apply that basic principle in matters of collective borrowing for national development purposes.
Money borrowed on the basis of sound viable projections is expected to yield. That does not imply all such borrowing must produce 100% anticipated returns. At any rate, there is supposed to be returns when the funds are used for the good purpose stipulated in the neat project documents. That is what the projected return-on-investment (ROI) would have indicated at all. The question now is, were there such plans and projections for all the money that Gambia government could not repay, landing us in the hollow depths of high indebtedness? Taking for granted that there were plans and projections, then something was already wrong from start. Those who developed those plans must either succumb to incompetence or being guilty of conniving at higher official levels to deny rest of the population the splendid opportunity of better shared gains from whatever investment there was.
To be classified as heavily indebted country is no small issue. A debt by all accounts is meant to advance the condition of the borrower. In that consideration livelihood of people in a country is expected to be enhanced when borrowed money is put to the required use by a government representing rest of the population.
Development politics and politics of development are two parallel poles in the paradigm of international schemes of partnership. To justify their existence and being able to retain stable payroll contracts, development organizations ensure there is a target beneficiary for potential funding. As long as project documents satisfy approved standards of presentation, they are to pass go. When finally such projects fail, those on the contract payroll would have already exhausted the two, three years or whatever terms already signed for.
Governments on their part are happier announcing over national radio and television that a project agreement is reached. Voters are easily lured by the hope that a government that is able to secure huge volumes of financial capital as debt is certainly in the good books of the lender. Behind the thick curtains where government negotiators of debt sit what goes on remains tightly kept in the dark chambers of power and politics.
Accountability works in a multiple of ways. Financial power houses reserve the authority to sanction debtor governments in accordance with what the order of the day determines. To ensure that they don’t miss out, government bureaucrats and specialized technicians fulfill the role of producing incredible detail of accounting and development documentary standards. Once approval is granted, there is hardly any occasion where those documents are ever consulted during implementation. The only time some of them consult documents is once a while and that is normally one document; the bank balance. When they know figures are running low with no evidence of progress, bureaucrats and technicians know how to tidy up the accounts for subsequent auditing encounters. Working with development organizations some times breed certain level of familiarity best utilized by those who know the game far too well.
Now that we all know that Gambia as a heavily indebted poor country is to gain for debt relief the population needs knowing what that means. Our government of the day has the gigantic task to review all projects for which we acquired the debt that rendered us heavily bankrupt. If the funds have been judiciously utilized there is need to share with the general public what the true results are. If the funds have been invested, we want to know the return on investment. For debts properly serviced, it is important to know the debt service ratio and how far targets are met.
For the government to provide us with indicators like buildings and schemes, it is equally important how that translates to enhancing livelihood of the people in whose good name all the cancelled debts have been acquired. This is a moment of real truth. If on the other hand this government of our day is unable to render a true and acceptable balance to show how all borrowed development funds have been allocated they have the gracious occasion to resign in good fate. Information about the meaning of this debt relief should not be packaged in the leather briefcases of conference participants and government high hands. If this is relief for all we must all know what it means and how it translates into increased supply of bread and butter. The population deserves better treatment than consoling public announcements carrying no accurate message and good meaning. A national balance sheet is most helpful for better way forward. Our government of the day must be bold enough to face the public and to satisfy the burning curiosity biting the lips of keen observers.
http://www.allgambian.net/enterprisedetail.aspx?id=5 |
Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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