Africa-Press – Senegal. Senegal has « a moderate over-indebtedness rate, proof of its debt control », assured the Minister of Finance and Budget, Mamadou Moustapha Bâ, affirming that the outstanding the public debt ratio to gross domestic product (GDP) in 2023 will be at 68.4%, therefore below the 70% threshold.
« Senegal has its debt under control, although it is normal for a country to get into debt, » Bâ said at the end of a budget session of the National Assembly on Monday.
On this occasion, he presented the main axes of the orientation debate on the 2023 State budget.
According to the Minister of Finance and Budget, the international financial institutions have identified 197 countries currently « over-indebted ».
There are three levels of over-indebtedness, he said: low, moderate and “distressed”. “Those in the low tier can’t even incur debt. Fifteen African countries are in the moderate level category, » he said, adding that South Africa and Senegal are among them.
The last analysis of the State’s debt was carried out in April this year by the Senegalese public authorities, recalled Mamadou Moustapha Bâ, adding that this is what made it possible to note that Senegal is among « the countries moderately over-indebted.
“The outstanding public debt relative to GDP in 2023 will be 68.4%, so it is below 70%,” the indicated threshold, Mr. Bâ said.
The net present value of debt to GDP is 51.3%, below the 55% threshold, he pointed out.
The Minister of Finance and Budget reports that the present value of the debt relative to exports in 2023 is 186.3%, far from the threshold of 240%.
The ratio of external debt to exports, which determines Senegal’s ability to meet its short-term maturities, is 19.1%, the threshold being 21%.
The foreign debt ratio to revenue is 16.8% for Senegal, the threshold not to be exceeded for this heading being 23%.
The credit ratings are a reflection of the solid economic fundamentals of Senegal, which is ranked among the best rated in Africa, the third place precisely, behind Botswana and South Africa, according to Mamadou Moustapha Ba.
Because of all these performances, he assured, Senegal’s human development index will increase over the next few years.
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