RBM warns treasury on rising public debt – The Nation Online

RBM warns treasury on rising public debt – The Nation Online: R

eserve Bank of Malawi (RBM) Governor Dalitso Kabambe has advised Treasury to rein in on both domestic and external borrowing, warning that there is insufficient room for further borrowing.

The governor’s pronouncement comes on the back of figures showing� public debt at $4.3 billion (K3.2 trillion) or 68 percent of gross domestic product (GDP) with domestic debt at $2.2 billion (K1.6 trillion) or 34.9 percent of GDP and external debt at $2.1 billion (K1.5 trillion) or 33 percent of GD

Treasury shifts focus to banks - The Nation Online

Treasury shifts focus to banks - The Nation Online: Treasury has for the past 18 months resorted to borrowing heavily from commercial banks and other non-bank institutions, shifting away from the Reserve Bank of Malawi (RBM), a latest World Bank report has said.

The Malawi Economic Monitor (MEM), a biannual publication of the World Bank that reviews Malawi’s recent economic developments and was launched in Lilongwe on Tuesday, observes that government net credit from banks has more than doubled to K403 million from K200 million in the first three quarters of the 2018/19 fiscal year ending June 30.

The report also reveals that net borrowing from non-bank sector has also increased by 62 percent over the same period from K418

Public debt rise worries industry | The Times Group

Public debt rise worries industry | The Times Group: Public debt rise worries industry
Posted By: Tom Sangalaon: April 25, 2019In: BusinessNo Comments
By William Kumwembe:

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has reiterated that public debt is stifling the country’s economic growth strides.

In its 2019 first quarter Economic Review issued on Tuesday, the chamber says economic gains registered in the first three months of the year are threatened by increasing public debt levels.

The first quarter saw a reduction in policy rate — a key driver of interest rates on loans — to 14.5 percent from 16 percent, a stable exchange rate at around K733 against the United States dollar and lower inflation rates which stood at 9.3 percent in March.

Public debt soars to k2.9 trillion - The Nation Online

Public debt soars to k2.9 trillion - The Nation Online: "Public debt soars to k2.9 trillion
Grace Phiri June 11, 2018 0 Comments


The International Monetary Fund (IMF) has said while the rising public debt, now at K2.9 trillion, is not too surprising given primary fiscal balance deficit performance in the 2017/18 financial year, fiscal authorities should tread carefully on the recent trend of a shift of debt composition toward domestic debt.

Speaking in an interview yesterday, IMF resident representative Jack Ree observed that the trend is not good because domestic debt is far more expensive than the external debt.

He said: “As highlighted lately, 2017/18 was a difficult year in terms of fiscal management. The budget implementation suffered both spending overrun, including one caused by Admarc bailout, and revenue shortfall. The recent trend of a shift of debt composition toward domestic debt, is however, not good because in the past, domestic debt was also a driver of runaway inflation and instability of kwacha"



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Public debt jumps 5.1% | The Times Group

Public debt jumps 5.1% | The Times Group:



Malawi's public debt stock rose by 5.1 percent during the fourth quater of 2017 to hit K2, 470.9

from K2, 352.0 billion recorded in the third quarter, latest figures from the Reserve Bank of Malawi

(RBM) have shown.

According to RBM Financial and Economic Review for Fourth Quarter released on Friday, external

debt stock rose by K47.1 billion or 3.3 percent to K 1, 486.2 billion while domestic debt stock

increased by 7.9 percent to K984.7 billion at the end of the quarter.

As a percentage of gross domestic product (GDP), total public debt stock rose to 52.8 percent of

GDP in the quarter under review from 50.3 percent in the third quarter of 2017.

RBM said the ratio of external debt to GDP increased by 0.9 percentage points to 31.5 percent

from 30.6 percent in the third quater.





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