Tanzania: Forum Backs Borrowing to Finance Key Projects

ECONOMIC and financial pundits yesterday cast weight on the importance of the country taking loans, with the government revealing mechanisms it has to see into it that they finance different projects.

The experts pulled together during the virtual forum to dis- cuss the importance of good management of loans in the implementation of strategic projects.

Central Bank Governor Prof Florens Luoga told the participants that the advantages and disadvantages of loans depend on the management of a particular loan(s).

“It’s the issue of carefulness when taking loans, this means considering taking concessional loans. Loans should not be taken blindly; the country has to have strategies, which are regularly re-viewed,” Prof Luoga explained.

He said Tanzania has been considering those factors to minimize risks and it has worked in the past, adding: “It is important to ensure that the country’s public debt remains sustainable. Tanzania’s economy is diversified… thus its debt is sustainable and stable.”

Elaborating, Constitution and Legal Affairs Minister Prof Palamagamba Kabudi said that before the government signs any loan agreement, the office of the Attorney General that analyses them has a duty to scrutinize and give legal advice.

“The AG goes through the contracts keenly and professionally and sees if the conditions set are friendly, including loan payment schedule to avoid de-fault. Until now, all loans taken have been directed to building national economy…we can’t…