Presenting the 2008 national budget last week, the Minister of Finance Samuel Mumbengegwi said continued reliance on domestic financial borrowings was the reason behind the continued increase in the domestic debt.
“Increased reliance on domestic financial borrowings had seen total domestic debt rise significantly, especially against the background of high nominal interest rates. Reflecting this, total domestic debt has progressively risen to the current levels of $12,5 million as at end of October,” Mumbengegwi said.
The bank said increased borrowing had tied up a high percentage of the nation’s savings.
Analysts said the domestic debt would continue to soar due to the necessity to fund various imports such as electricity, grain and fuel.Post published in: Economy