Parastatals, firms owe Government N$3 billion

TOTAL loan guarantees extended by Government to state-owned enterprises and some private companies stood at N$3,2 billion by the end of September, of which N$1,3 billion were guarantees for domestic loans.

Loan guarantees for private companies amounted to N$215 million. According to the latest Bank of Namibia (BoN) quarterly report released on Tuesday, the guarantees for Government institutions amounted to N$1,9 billion for the period between July and September 2007.A year ago, total loan guarantees stood at N$4,2 billion or 9.6 per cent of the Gross Domestic Product (GDP), which was then N$43,9 billion, but has now increased to N$48,7 billion.Debt owned was reduced in the meantime because one state-owned enterprise repaid a loan of N$279 and another repayment of N$22,5 million on foreign loans was made.It could not be established which parastatals repaid debts.”We cannot reveal the identities of these institutions,” a senior BoN official told The Namibian on enquiry.Meanwhile, the total debt stock of the Namibian Government was reduced to 24,6 per cent of the GDP or N$ 11,9 billion by September, surpassing the Finance Ministry’s target of 25 per cent.Of this amount, foreign debts of Government stood at N$2,9 billion and the domestic debt stock came to N$9 billion.Upon becoming Finance Minister, Saara Kuugongelwa-Amadhila set a goal to reduce the high debt stock, which stood at N$31,6 billion two years ago, and it appears she is achieving that target.According to the latest Bank of Namibia (BoN) quarterly report released on Tuesday, the guarantees for Government institutions amounted to N$1,9 billion for the period between July and September 2007.A year ago, total loan guarantees stood at N$4,2 billion or 9.6 per cent of the Gross Domestic Product (GDP), which was then N$43,9 billion, but has now increased to N$48,7 billion.Debt owned was reduced in the meantime because one state-owned enterprise repaid a loan of N$279 and another repayment of N$22,5 million on foreign loans was made.It could not be established which parastatals repaid debts.”We cannot reveal the identities of these institutions,” a senior BoN official told The Namibian on enquiry.Meanwhile, the total debt stock of the Namibian Government was reduced to 24,6 per cent of the GDP or N$ 11,9 billion by September, surpassing the Finance Ministry’s target of 25 per cent.Of this amount, foreign debts of Government stood at N$2,9 billion and the domestic debt stock came to N$9 billion.Upon becoming Finance Minister, Saara Kuugongelwa-Amadhila set a goal to reduce the high debt stock, which stood at N$31,6 billion two years ago, and it appears she is achieving that target.