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Namibia's borrowing and debt levels have been a concern in recent years, but are now under control and are showing a decline since the beginning of this year.
 
Finance and Public Enterprises Minister, Iipumbu Shiimi, said the country's debt level is still sustainable and within controllable levels.

Shiimi said this during an interview with the Business Today show focusing on the state of the Namibian economy.

The Namibian debt level has been a subject of public debate, with economists, international rating agencies, and multilateral financial institutions describing it as way too high and likely to become unsustainable.

The Finance Minister has assured the nation that the situation that was starting to reach dangerous levels has been contained and brought back to manageable levels.

The debt went up to 70% of GDP, which was a sign of a risk, but the good news now is that it is hovering around 60% of GDP and is expected to decline further.

The 60% debt level is what SADC countries have agreed to be their benchmark.

Recent media reports indicate that the government is expected to borrow $15.3 billion this year, but the question is what exactly necessitated this borrowing, and whether it is not adding more pressure to the already strained local economy.

As to whether the government will remain in control of the situation, it is yet to be seen, with eyes on the next medium-term budget statement.

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Author
Timo Andreas