Bank of Tanzania January Monthly Economic Review report said the increase by US$ 138.2 million and US$ 832.5 million of the preceding month and December 2014 respectively, was largely.
The central bank report said central government’s external debt increased by US$ 41.9 million in December 2015 to US$ 12.45 billion which accounted for 80.8 percent of the external debt.
On annual basis, the central government external debt increased by US$ 866.0 million. In both cases the increase was caused by new disbursements.
Further, the MER said in terms of external debt by creditors, the proportion of debt owed to multilateral and bilateral creditors declined marginally while debt owed to commercial creditors and export credit increased.
On the other hand, the commercial and export credit debt increased largely driven by new disbursements to the private sector, the report stated.
During December 2015, new disbursements received amounted to US$ 112.3 million, out of which US$ 90.3 million was received by the private sector and the balance, by the government.
Part of the report reads: “During the year ending December 2015, debt inflows amounted to US$ 1,626.9 million, of which US$ 1,321.0 million was received by the central government.
External debt service in December 2015 amounted to US$ 26.0 million, out of which US$ 25.2 million was principal repayment and the remaining was interest payment.”
It adds: “For the year ending December 2015, external debt payment was US$ 378.4 million, of which US$ 209.6 million was principal payment.”
The BoT report said domestic debt stood at over 8.59trn/- as of December 2015 which is down from 8.40trn/- at the end of November 2015.
And on an annual basis, the debt stock increased by over 1.11trn/- from the level registered at the end of December 2014.
It is said that the increase was on account of government financing needs. With respect to domestic debt by instrument, Treasury bonds remained dominant, accounting for 64.4 percent of the domestic debt, followed by Treasury bills at 31.2 percent.