By Nicholas Bass
The Financial Minister, Hon Seedy KM Keita, on Tuesday, 27th June told journalists how government loans from the World Bank do not cause inflation in the Country.
Speaking at the press conference held at the Ministry of Finance Auditorium in Banjul, Hon Seedy KM Keita refuted several rumors on Social Media which include devalue of the Dalasi caused by several loans taken by the government of AdamaBarrow from the World Bank.
Hon. Keita in response denied the rumor saying “No loan is contracted simply for the current expenditure because the upkeep of the government is not sustained by loans.”
He said such loans are contracted to support the asserts formation or the infrastructure base of the country in the areas of Education, Health, Roads, Agriculture, and the livelihood of citizens that supports the capacity of the economy to grow. He added that loans do not affect the exchange rate of the Dalasi.
However, he pointed out that the government of Adama Barrow is aware of the menace of corruption in the economic system of the nation that has prompted the government’s recent efforts in assigning a team of the International Monetary Fund (IMF) to come and do a holistic review of the economy on its vulnerability to corruption and public management.
The Minister stressed that corruption is a cross-cutting national threat that requires everyone to wage war against it because it is everyone’s business. Noting that, his Ministry has digitized revenue collection and payments of government funds at the Banks.
Minister Keita highlighted the Public Procurement bill that was passed in the House of Parliament in enhancing the value for money expenditure to mitigate the spread of corruption.
He predicted that the growth of the nation’s economy last year was at a scale of 4.3 which is likely to increase from 5.6 to 6.
The National Deputy Division Chief of the International Monetary Fund (IMF) of the African Department, Ivohasina F. Razafimahefa pointed out that the economy of the country is recovering. He noted that inflation has accelerated to 17.4% which has greatly increased the cost of basic commodities such as rice, and vegetables among many others.
Further to that, he said many countries are affected by inflation that emanated from the Corona pandemic and the Ukrainian war has caused an increase in the price of basic commodities, fuel among many other commodities.