News Column

PM Upbeat On National Economy, Says We Can Borrow

May 29, 2014

THE country's economy is healthy and the country can continue borrowing from international agencies, the Prime Minister, Mizengo Pinda told the National Assembly.

The Premier also said that the country was in good position regarding debt and that it was qualified for loans as per international standards.

According to statistics from the Bank of Tanzania (BoT), Tanzania borrowed an average of 360bn/- a month from external sources in the year ending February 2014.

Mr Pinda told MPs that the government still qualified for loans and that it was taking honouring its debt obligations accordingly.

The prime minister was responding to Mr Habibu Mnyaa (Mkanyageni-CUF) who wanted to know why Tanzania was currently taking loans in terms of multi-billion of shillings from the China Exim Bank and what were likely to be the side effects of the national debt.

Mr Mnyaa wondered why Tanzania, which was among the countries that benefited from loan exemptions, continued to seek loans.

Mr Pinda told the House that Tanzania, like any other country in the world, was seeking loans for its development programmes.

He said the exercise was being conducted basing on set laws, which monitor the debt and loan applications.

"We are doing this according to the law. As a country, we still qualify for loans and we are doing everything in our capacity to handle debts accordingly," said Mr Pinda.

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Source: AllAfrica

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