L
LequteMan
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Nigeria- The Debt Management Office (DMO) has recommended that Nigerian government shouldn't borrow more than $12.4 billion (home and foreign loans) to finance its projects in 2015.
This would, according to Vanguard amount to N2.5 trillion addition to the existing N7.9 trillion outstanding debt as at end 2014, bringing the total indebtedness to about N10.4 trillion.
In its Debt Sustainability Analysis (DSA) report for 2014, the DMO said that the solvency and liquidity indicators under the Baseline Scenario show that Nigeria is at a very low risk of debt distress.
In fact Nigeria is actually under-borrowing as at today.
However under its Pessimistic Scenario DMO report shows that though the results of its analysis indicated that the country would remain at a low risk of debt distress it also shows a rising trend for all the debt indicators throughout the projection period (2014-2034).
This means a prolonged deterioration in one or two variables such as reduction in GDP growth rate, increase in inflation, decline in revenue, etc, could increase the risk of debt unsustainability.
The result further confirmed the fact that though the country has no risk of debt distress in the near term under both Baseline and Standard Stress Test Scenarios, DMO warns that the country is highly susceptible to revenue shocks based on deterioration in major macroeconomic variables.
#Nigeria #DMO
This would, according to Vanguard amount to N2.5 trillion addition to the existing N7.9 trillion outstanding debt as at end 2014, bringing the total indebtedness to about N10.4 trillion.
In its Debt Sustainability Analysis (DSA) report for 2014, the DMO said that the solvency and liquidity indicators under the Baseline Scenario show that Nigeria is at a very low risk of debt distress.
In fact Nigeria is actually under-borrowing as at today.
However under its Pessimistic Scenario DMO report shows that though the results of its analysis indicated that the country would remain at a low risk of debt distress it also shows a rising trend for all the debt indicators throughout the projection period (2014-2034).
This means a prolonged deterioration in one or two variables such as reduction in GDP growth rate, increase in inflation, decline in revenue, etc, could increase the risk of debt unsustainability.
The result further confirmed the fact that though the country has no risk of debt distress in the near term under both Baseline and Standard Stress Test Scenarios, DMO warns that the country is highly susceptible to revenue shocks based on deterioration in major macroeconomic variables.
#Nigeria #DMO
