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Archive for the tag “Inflation”

Bank of Uganda: Monetary Policy Statement for October 2019 (07.10.2019)

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Uganda: Fresh report states that the debt-service has grown 129% within one financial year!

 

The Republic of Uganda’s economy is really reeling, it cannot be sustainable as the Government of Uganda is growing their debt like there is no tomorrow. While the fiscal growth is substantially lower than their rate of debt-service. As the growth of debt combined with lacking growth to substantiate the shortfall.

In addition, with the knowledge of added expenses, growing shortfall of funds in the upcoming Financial Year of 2019/20 and the election year of FY 2020/21. There will be more add-ons on the need for debt service, as the state already had loans outstanding, which the grace period ends and the debt-service begins on. Therefore, the amount of loans will transpire even more, than what is in this report. The endless cycle of debt and growth of it, is worrying, as well, as the state thinks that the magical wand of oil-money will clear this debt. Even as the first operational oil field and such has been postponed yet again.

Just look!

“The total Government of Uganda external debt service by end of FY 2017/18 amounted to US$275.75 million, which was an increment of l29% compared to US$120.62 million in FY 2016/17” (…) “Debt service of Uganda’s external debt is on the rise and outstripping growth of the country’s income, currently at 6%. This poses risks for future debt repayments, especially as the country continues to acquire external debt at less concessional terms, especially to finance the oil development programme” (P: 6-7, 2019)

“It follows that as interest rates increase, the debt service obligations of Government also increases. The rise in external debt interest costs attests to the fact the government is increasingly contracting non-concessional debt, which will increase the repayment burden” (P: 24, 2019)

“However, this may not be the most likely scenario, as most projects have been discounted and some excluded in the macroeconomic framework. With the development of the NDP III, additional project and other pipeline project related to the oil developments and other infrastructure, will increase the financing requirement of government in the medium term. The inclusion of the above projects will re-classify Uganda from low risk of debt distress to moderate risk of debt distress or high risk if the export shocks materialize. A downgrade would have significant implications for the program with the IMF, where Uganda’s credit risk rating will worsen; implying that accessibility of nonconcessional financing will be limited. This will limit credit to Uganda to only concessional and grants financing.” (P: 28, 2019)

You don’t need to smart about it, as the state has bigger budgets with higher shortfall in the economy, combined with debt service and higher interest payments on the growing amount of loans. You know sooner or later, the economy will tank, as the fiscal responsibility is taken for granted and that fresh funds are lacking, because these are taken out of the economy to finance the payments of the old debts. Instead of generating growth and actually naturally grow the economy, by spending and investing as a state. The money is taken away to service debt, instead of building the state. That is what they are doing and at a alarming rate. Peace.

Reference:

NEC1-19 – ‘REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE STATE OF INDEBTEDNESS, GRANTS AND GUARANTEES’ June 2019, Parliament of Uganda

Bank of Uganda: Monetary Policy Statement for April 2019 (01.04.2019)

Bank of Uganda: Monetary Policy Statement for February 2019 (07.02.2019)

Philippines: Department of Foreign Affairs – Documentary Requirements for the Renewal of Regular Passports (15.01.2019)

Philippines: President Duterte – New Years Message (01.01.2019)

Philippines: President Rodrigo Duterte – Christmas Message (25.12.2018)

Malawi: Government to distribute over 430,000 bags of maize to food-insecure households (22.09.2018)

The Government of Malawi, through the Department of Disaster Management Affairs (DoDMA), will from the month of September 2018, undertake a once-off maize distribution exercise targeting acute food-insecure households in 26 districts of the country, pending the final Malawi Vulnerability Assessment Committee (MVAC) report and development of the 2018/2019 Food Insecurity Response Plan.

Speaking in Blantyre when he presided over the launch of the once-off distribution, Minister of Agriculture, Irrigation and Water Development Joseph Mwanamvekha said a total of 432,729 bags of maize [21,636.5 tonnes] will be distributed to 432,729 food-insecure households in 26 districts of the country.

“Each food-insecure household will receive a 50kg bag of maize and this will be followed by the MVAC response,” said Mwanamvekha.

The once-off distribution comes after the country experienced prolonged dry spells and a severe outbreak of Fall Army Worms, which rendered many households food-insecure.

The relief maize will be distributed to households in Blantyre, Neno, Chiradzulu, Mulanje, Thyolo, Phalombe, Mwanza, Machinga, Mangochi, Balaka, Zomba, Chikwawa, Nsanje, Karonga, Mzimba, Rumphi, Chitipa, Dowa, Mchinji, Kasungu, Ntchisi, Dedza, Ntcheu, Lilongwe, Nkhotakota and Salima.

Bank of Uganda: Monetary Policy Statement for August 2018 (13.08.2018)

My letter to President Duterte: Let us have a conversation!

Dear Honorable Sir, President Rodrigo Roa Duterte!

The reason why I write you, is because your misconception. Let me first allow you and say to you. Your allowed to say anything between the moon, the stars and the deepest sea-bed of the kingdom I reside in. President Duterte you can call Norway by all names of the book, say anything you want about us or Our Prime Minister, about our traditions and even our strict-rules foreign workers to get visa. Please, talk about it. I have no trouble with it. It is a good thing to be questioned and get criticism from afar, from someone looking in and questioning our possible misgivings. We have loads of mistakes and things that is not working in Norway. Therefore, please address if you may, especially if you ever come to visit here, when you might resume the peace-talks with the red-army in Mindanao. Please, talk about our ways and politics. Feel free, Mr. President!

Now, that I have allowed you to do that, let me look into one of your statements, that Rappler has reported today!

DAVAO CITY, Philippines – Critics are welcome to say all they want about his governance, but President Rodrigo Duterte said they have to make sure they’re not foreigners in his country. “Every Filipino is entitled to criticize me as a matter of right. Okay sa akin ‘yan (That is fine with me), but certainly not a foreigner, however holy you are. I will not allow [you] to do it in my country,” Duterte said in his speech on Saturday, July 7, at the inauguration of Malayan Colleges Mindanao in Davao City. He added, “After all, we’re not supposed to do it in your country.“” (Basa, 2018)

I don’t why your so bitter, so sour, and don’t know if foreigners ever hurt your pride and your vision. I understand that your battling belittling aid and donor loans, that trigger the Republic and the ways it has maneuver to get the grants and donations, where your state would be monitored and muffled with to get donations from abroad. That I get and that is more damaging, than even development. Where the donations would belittle you and your administration. That I respect and understand. But this here, I don’t get.

Why can they not question the government and say something about it? Why can’t I? I know I am not a citizen of the wonderful island republic of the Philippines. However, if there are misgivings, an outsider might have the balls to say it, while the insider might be afraid to lose the job or even not get hired again. Have you considered that? Did that cross your mind?

If a Filipino might address you wrong or even cross you badly, you might re-appoint someone else or even revoke their licenses? What about that then? You don’t have the same power over the foreign nationals inside the Republic. That also comes with the power of the state and the diplomatic disputes it might create. You got criticism for the sudden detention of the Australian Nun. That was to be expected, no matter she has done or what she hasn’t done. If she has broken the codes of entry or broken codes of law. It would be fine, but if she just was a vocal human being, then it is wrong.

So as I stated, President Duterte. Please say all the wrongs about Europe or Norway, as much as you please. Please call it out and call us ice-cold Vikings, who isn’t treating Filipino foreign workers well. Say it and than the diplomat’s can address it. We can carry it, but we hope you could extend the hand. Let people like me address you and understand why I do it.

It is healthy to have a conversation, to have people who looks with another view and with another perspective, than the narrative and the possible outcome might be better. The different views and the enriched discussion might lead to something fruitful and also give it another direction. Instead of being ignorant.

So, Please Mr. President do it in my country, if your ever has the chance, because it is healthy. We need conversations and perspectives to broaden our insights to life.

Best Regard

Writer of Minbane

Reference:

Basa, Mick – ‘Duterte says he welcomes criticism, but not from foreigners in PH’ (07.07.2018) link: https://www.rappler.com/nation/206730-duterte-criticism-foreigners-philippines?utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#Echobox=1530968818

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