Domestic market debt makes up 63 per cent of total govt debt
24 May 2019 13:50pm
WINDHOEK, 24 MAY (NAMPA) - Domestic market debt makes up 63 per cent of government's total debt amounting to about N.dollars 87 billion, down from 67 per cent in July last year.
Minister of Finance, Calle Schlettwein revealed this during a media conference held here on Thursday.
Domestic market debt amounted to close to N.dollars 54.9 billion at 31 May 2019.
Schlettwein said the government chose to use the local market to raise debt in order to help in the development of the local capital market by providing more investment opportunities, in addition to funding the government deficit.
The offering of the bulk of the funding requirement to domestic investors is necessitated by the need to have sufficient quality investment assets in the domestic market and thus aid in deepening the domestic capital markets and provide an avenue for domestic investors to place their investments domestically, he said.
The domestic debt comprises treasury bills amounting to close to N.dollars 21.8 billion; treasury bonds of N.dollars 28.4 billion; and inflated linked bonds amounting to about N.dollars 4.7 billion.
Total foreign debt which comprises bilateral and multilateral loans, and Eurobond and Johannesburg Stock Exchange (JSE) listed bonds amounted to just over N.dollars 32.1 billion, making up 37 per cent of the government's total debt.
Bilateral loans (from Germany and China) amounted to close to N.dollars 1.2 billion; multilateral loans to about N.dollars 10 billion; a JSE listed bond to about N.dollars 2.9 billion; and Eurobond to about N.dollars 18 billion as at 31 March 2019.