Eurobond

Govt’s loan repayment dilemma

Govt’s loan repayment dilemma

Staff Writer Namibia’s plan to borrow from the International Monetary Fund (IMF) to help finance its N$21.4 billion deficit could create a repayment predicament if the N$4.5 billion loan is granted. This comes as it emerged that the majority of government debt maturities lie in the next few years, with the first Eurobond maturing in late 2021. “The timeline for repayment is the only real area of any concern, being in 3¼ to 5 years – right between Namibia’s two Eurobond maturities and with a public debt profile where the majority of maturities lie in the next few years. Overall,…
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It is not your N$750

When the emergency income grant (EIG) of N$750 was announced, we applauded the idea. At the same time, we raised concerns about how the program would be packaged and rolled-out to the public. The current wave of public gripes about the grant seems to reflect that indeed, there is major misunderstanding about what the EIG was meant to be. Expectations were raised that cannot be met. Promises of ‘free money for all’ to momentarily deflate rising fear and anger amongst low-income citizens, could backfire. When loftily-announced pledges (like fishing jobs for all who were retrenched due to Fishrot) fall flat,…
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If you need help, ask for it

Namibia faces a serious problem of re-paying the Eurobonds that will come due in October 2021. The time for outside professional, experienced professionals to address the problem has come. This cannot be done on the cheap. We are loathed to make this admission. We have always criticized government ministries about their dependence on foreign consultants. Since independence, Namibia has spent hundreds of millions in hard currency for consultants. Ministries have paid consultants to do their jobs for them over 30 years. Consultants contracted for a month to help write one document, were given every assignment under the sun. Consultants paid…
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