As Public Debt Soars to NLe63.5 Billion Each Sierra Leonean Owes NLE8.4million.
Freetown, SIERRA LEONE – Sierra Leone is grappling with a burgeoning public debt crisis as the total debt reached a staggering NLe63.5 billion by the end of the second quarter of 2023. Disturbingly, this translates to a per capita debt of NLe8.4 million for each Sierra Leonean, according to the latest debt statistics unveiled on Thursday, January 25, 2024.
The per capita measure, known as net debt per capita, is a critical indicator reflecting the amount of debt held by the government per citizen. The calculation involves dividing the total public debts by the population at the last census.
The Public Debt Management Division (PDMD) at the Ministry of Finance disclosed that this substantial increase of 22.9% to NLe63.5 billion is compared to NLe51.1 billion recorded at the close of December 2022. The PDMD attributes this surge primarily to the depreciation of the Leone concerning external debt.
The inaugural Semi-Annual (First Half) 2023 Public Debt Statistical Bulletin provides a comprehensive overview of the combined domestic and external debts during the period. The report indicates a 13.4% increase in domestic debt, reaching NLe18.2 billion, while external debt experienced a significant 27% surge, climbing to NLe45.3 billion due to the depreciation of the Leone.
Comparing the debt figures to the end of June 2022, there was an alarming annual increase of 63.3%. The PDMD clarifies that this surge is predominantly driven by the impact of Leone depreciation on external debt and new domestic borrowing to implement the national budget.
Breaking down the numbers, the external debt stood at NLe45.32 billion by the end of June 2023, marking a 27.1% increase from December 2022, primarily due to the depreciation effect. Meanwhile, domestic debt reached NLe18.20 billion by the same period, reflecting a 13.38% increase from December 2022.
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