Sierra Leone Government Targets NLe3.8 Billion in Borrowing For 2024
Julius Mustapha Harding Sierra Leone’s government is set to borrow NLe3.8 billion in the 2024 fiscal year, aiming to address a projected budget deficit while managing its existing debt burden.
According to the Ministry of Finance, Sierra Leone’s total public debt had reached NLe63.52 billion by June 2023. To manage this debt and the projected NLe2.859 billion deficit for 2024, the government will borrow NLe3.765 billion domestically and NLe906 million for external debt repayment in the first half of the year.
The borrowing plan will utilize Treasury bills (T-bills) and bonds (T-bonds) with varying maturities. The government aims for a balance between T-bills and T-bonds, allocating NLe1.88 billion to each type of instrument domestically. To maintain market stability, a new external borrowing limit of US$100 million has also been established.
The Ministry of Finance emphasizes its commitment to responsible borrowing practices. They aim to strike a balance between meeting fiscal needs and ensuring long-term debt sustainability. However, some remain concerned about the growing debt burden and its potential impact on future generations.
Sierra Leone’s ability to bolster revenue generation and effectively manage its debt will be critical for ensuring future financial stability.
When are we going to be free from borrowing and become financially independent