SSHFC Head Office

By: Kebba AF Touray/Awa Bah

The Minister of Finance and Economic Affairs Mambury Njie, told deputies that a total of D2,022,441,000.00 is owed to the Social Security and Housing Finance Cooperation, by State owned enterprises.

Njie disclosed this information yesterday Thursday March 26th at the National Assembly, in response to a question raised by the Member for Serre Kunda Madi MK Ceesay. Hon Ceesay asked Njie to give a breakdown of how much money is owed to the Cooperation.

In a question raised by Ousman Touray, the Member for Sabach Sanjal Constituency on the factors responsible for the increment of cement in the country, Finance Minister Njie indicated that the shortage in cement supply, is to promote local industrial production and employment creation; that this did not materialise on the part of local cement producers, and as such, led to the increment.

In a question raised by Sainey Jawara, the Member for Lower Saloum Constituency on the criteria to dispose of unused Government vehicles at various Ministries, departments and agencies, Finance Minister Njie said his Ministry has requested all other Ministries, departments and agencies, to submit a list of derelict vehicles under their purview; that the Finance Ministry hired a consultant to assess the state of the vehicles and proposed a reserve price for each, based on the report of the consultant. 

On PPG Debt

On the Public and Publicly Guaranteed (PPG) Debt, Finance Minister Njie said total stock of PPG debt as at end 2018, stood at 65.9 billion dalasi, of which external debt constitute 54.5 percent and the remaining 45.5 percent as the domestic debt portion. Finance Minister Njie who was laying the draft annual report on state’s debt management operations for parliamentary consideration and adoption,

said: “The nominal debt as percentage of GDP decreased from 124 percent as at end 2017 to 87 percent as at end period 2018. Present Value (PV) of debt to GDP also decreased from 106 percent in 2017, to 74.4 percent in 2018. The reduction in the aforesaid ratios is as a result of the recent GDP rebasing”.

He said the Medium Term Debt Management Strategy (MTDS) for the 2019-2022 horizon, provides the strategic direction of Government’s intent on borrowing and debt management over the medium term, to achieve the objective of ensuring that financing needs are met at the lower possible cost and consistent with a prudent degree of risk.

He cited that in 2018, Government was able to introduce longer dated 3-year and 5-year Bond instruments in the domestic debt market and successfully separated domestic debt instruments from monetary policy ones. “The MTDS for the period 2019-2022 represents a robust framework for prudent debt management, because it provides a systematic approach to decision making on the appropriate composition of external and domestic borrowing to finance the 2019 budget deficit,” he said.

He highlighted that meeting Government’s finance needs on a timely basis at the lowest possible cost, lengthening the maturity of the domestic debt by increasing the share of the longer dated domestic debt instrument in the portfolio during the medium term, as objectives of the MTDS. “The Medium Term Debt Management Strategy aims to maximize external concessional financing in order to reduce borrowing cost, continuing the issuance of the 3 and 5 year bonds to develop and deepen the domestic debt market and extend the maturity of domestic debt by substituting a greater proportion of the short term debt with the longer term, thereby refinancing risks of the portfolio,” he stated.

The Bill was referred to the relevant Committee of the National Assembly for consideration, scrutiny and adoption.

Sitting continues on Monday April 1st 2019, at 10:00 am.

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