Namibian president worried about country’s high debt stock

Monday, June 8th, 2020 00:00 |
Members of parliament listen to President Hage Geingob delivering his state of the nation address in Windhoek, capital of Namibia, on June 4, 2020. (Xinhua/Tirivangani Masawi)

Namibian President Hage Geingob  said he is concerned about the country's projected debt stock for 2020/21, which has surpassed the debt threshold set by the Southern African Development Community.

"It is not acceptable, we did not expect the economic downturn, the drought, and COVID-19," Geingob said during his State of the Nation Address.

"Now we have to divert funds. That debt is not sustainable. We must do something to bring it down. I admit the debt is not manageable. We must just do something to manage it," he added.

According to the 2020 budget presented in parliament last week, Namibia's debt stock for 2020/21 fiscal year is seen rising to 117.5 billion Namibian dollars (7 billion U.S. dollars), or 68.7 percent of its GDP, from the 54.8 percent estimated for the 2019/20 financial year.

The budget also shows that Namibia's economy is expected to contract by 6.6 percent this year and by 1.1 percent in 2021. (Xinhua)

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