The Gambia’s incoming government will inherit a debt of GMD3.7 billion, Finance Minister Abdou Kolley indicated in his budget to the country’s parliament.
The West African nation recorded a government debt to GDP of 50.70 percent of the country’s Gross Domestic Product in 2015. The new government will have to make changes to make better the country’s ability to make future payments on its debt.
Interference in monetary policy by President Yahya Jammeh has affected The Gambia’s borrowing costs and government bond yields, financial experts said.
According to the IMF, there was a moderate risk of external debt distress for The Gambia, while public debt continues to pose significant
“The stock of total public debt is significantly above the indicative threshold and is a major source of concern. Considering the elevated level and recent rapid growth of public debt, The Gambia faces a
heightened overall risk of debt distress,” the Washington-based institution said.
Interest payments on external debt in Gambia was last measured at US$4,993,000 in 2014, according to the World Bank. This item includes interest paid on long-term debt, IMF charges, and interest paid on short-term debt.