{"id":6148,"date":"2017-06-21T18:31:14","date_gmt":"2017-06-21T18:31:14","guid":{"rendered":"http:\/\/www.iwacu-burundi.org\/englishnews\/?p=6148"},"modified":"2017-06-23T09:56:29","modified_gmt":"2017-06-23T09:56:29","slug":"burundi-risks-being-deeply-in-debt","status":"publish","type":"post","link":"https:\/\/www.iwacu-burundi.org\/englishnews\/burundi-risks-being-deeply-in-debt\/","title":{"rendered":"Burundi risks being deeply in debt"},"content":{"rendered":"<p><strong>Since 2014, public national debt is increasing. Today it exceeds BIF 1.200 \u00a0billions. Parcem, a local NGO aiming at changing people\u2019s mentality is worried about the way the debt is increasing.<\/strong><\/p>\n<p>\u201cThe accumulation of this national debt currently represents more than BIF 1.200 billions\u201d said Faustin Ndikumana, Executive Secretary of Parcem on Thursday 8 June.<\/p>\n<p>He says this debt represents twice the total revenue that Burundi Revenue Authority receives annually. He also says it increases every time a public deficit is financed by borrowing.<\/p>\n<p>The debt is, according to him, divided between the advances of the central bank, (BIF 700 Billions) the debts to the commercial banks and the remainder concerns the private sector\u2019s arrears on the treasury and obligation bonds. \u201cThe government is indebted for consumption and not for investing.\u201d He says the accumulation of the debt is due to the delay of the payment by the private sector and the rescheduling of central bank advances. These ones are forbidden by the financial law and microeconomic convergence criteria of the East-African Community.<\/p>\n<hr \/>\n<p><a href=\"http:\/\/iwacu-burundi.org\/opendata\/en\/iod-bu-082-domestic-public-debt\/\" target=\"_blank\"><strong>&gt;&gt; Domestic public debt (2012-2016)<\/strong><\/a><\/p>\n<div id=\"highcharts-iqulyba\"><script src=\"\/\/cloud.highcharts.com\/inject\/iqulyba\" defer=\"defer\"><\/script><\/div>\n<p style=\"text-align: center;\"><strong>Source : Bank of the Republic of Burundi<\/strong><\/p>\n<p><strong>Public enterprises are not spared<\/strong><\/p>\n<p>M. Ndikumana accuses the central bank to manipulate the money supply while the real economy is not increasing. \u201cThis causes direct repercussions on the progressive depreciation of the national currency which will be observed through the increase in price in general\u201d.<\/p>\n<p>This activist of the civil society also mentions the effect of having the private sector dispossessed:\u201d the central bank tends to finance the government instead of the private sector.\u201d He says the arrears of the government towards the private sector hampers its operation.\u201d It then becomes difficult for it to pay the delay interest.\u201d The repeated requests of liquidity by the government drain the liquidity of public enterprises. This draining of liquidity limits public enterprise investments. He says if the debt continues to increase at the same speed, Burundi will risk having excessive debt.<\/p>\n<p>He deplores, however, the absence of strategies to clear the debt. He recommends the government to adopt again a budgetary orthodoxy, that is a careful and sound management of the budget and provide an annual budgetary line intended to reimburse the debt.<\/p>\n<p>We contacted Musharitse D\u00e9sir\u00e9, spokesman for the Ministry of Finance but he said he should not react to any declaration made by Parcem and Olucome.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since 2014, public national debt is increasing. Today it exceeds BIF 1.200 \u00a0billions. Parcem, a local NGO aiming at changing people\u2019s mentality is worried about the way the debt is increasing. \u201cThe accumulation of this national debt currently represents more than BIF 1.200 billions\u201d said Faustin Ndikumana, Executive Secretary of Parcem on Thursday 8 June. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6154,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[8,670],"tags":[735,474],"_links":{"self":[{"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/posts\/6148"}],"collection":[{"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/comments?post=6148"}],"version-history":[{"count":5,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/posts\/6148\/revisions"}],"predecessor-version":[{"id":6169,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/posts\/6148\/revisions\/6169"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/media\/6154"}],"wp:attachment":[{"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/media?parent=6148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/categories?post=6148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iwacu-burundi.org\/englishnews\/wp-json\/wp\/v2\/tags?post=6148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}