The Gambia’s domestic debt has increased to 31.2 billion dalasi at the end of December 2018 says the governor of The Gambia Central Bank.

The country’s unsustainable domestic debt rose from 29.7 billion dalasi in 2017 to 31.2 billion dalasi in 2018.

Bakary Jammeh, governor of the Gambia’s Central Bank, said that the increase in domestic debt was as a result of a decrease in grant flows from the country’s development partners.    

Jammeh made this revelation on Friday during a meeting in Banjul of the Monetary Policy Committee of the Gambia’s Central Bank.  The committee met to assess the domestic and international financial developments as well as to decide on the Gambia’s policy rate.

The governor attributed the domestic debt increase to the fact that donors have their procedures and some take time especially pledges which “might not necessarily be included in the budget.”

Jammeh added that there were reforms and negotiations at the Ministry of Finance to secure funds through loan and grant supports. He said 25 million Euros from the EU has already been secured as of January 2019.

He said the bank forecasts an improved economic growth to range between 5 to 6 % in 2019. He added that overall direction of the economy was very positive as all the sectors expect strong economic activities going forward.

“The future of the country in terms of economic transformations is very bright as economic growth is coming, inflation is low, reserves available, markets are stable and of course the banks are making lot of good money.”

He said that the structure of the Gambian economy has shifted with the rebased GDP as the services sector, tourism, financial and banking, insurance, construction and communications were the pillars for the economic growth.

Jammeh said the stock of treasury and Sukuk-al-Salaam bills increased to D17 million as compared to last year with D15.5 billion.

He said the total revenue and grants stood at D10.7 billion in 2018 lower than D13.3 billion in 2017. He added that domestic tax including tax and non-tax revenues rose by D8.8 billion.

“Preliminary government fiscal operations for 2018 showed a budget deficit of D3.9 in last year compared to D3.7 billion in 2017. Overall, the budget balance improved to a deficit of D5.8 billion while total expenditure and net lending declined to D14.6 billion in 2018 compared D17.6 billion in 2017.”