Finance Minister Jacob Jusu Saffa has appealed to the World Bank Country Manager to support the government with more budgetary support to enable them offset domestic arrears. Speaking at the signing of the US$40million grant on Thursday 21 March, 2019, the Minister said that “what is killing us is our arrears, as at last week domestic debt payment was over Le50 billion. We cannot afford to pay Le50 billion every week” he said. The Minister thanked the Bank for supporting the government, whilst revealing that it was because they adhered to the triggers that is why the country was compensated. Noting that originally it was supposed to be a loan, “but given our improved performance the Bank thought it wise to convert it to grant and increase the amount.” He went on to say that the major means of financing the budget is through the country’s revenue but they may have to look elsewhere to complement if the revenue cannot cover it all. This budgetary support comes through the Central Bank and can either be tied to spending for a specific sector or an open one to enable the government spend on regular financing of the budget and avoid bank borrowing. “They don’t give on silver plates, respectfully called conditionalities but now becoming triggers meaning prior actions. For triggers they discuss with you and that is different from the conditionalities which were imposed” he explained. “But now they sit down with government and negotiate the triggers, what is possible on not.” For this support nine triggers were agreed before March 2018, and out of that three were met before April 2018, one of it relates to the Seed Certification Agency Act, the National Fertilization Regulatory Agency, Fishing and Agriculture and the remaining six he said were not respected. “Without adhering to these triggers the money couldn’t flow.” Minister Saffa said that within one year they have been be able to respect these triggers by adhering to the prior actions amongst which are related to EDSA, Financial Management , petroleum product liberalisation, the transfer of responsibility to Teaching Service Commission (TSC), harmonising the fiscal regime in the mining sector and Asset Disclosure Regulation. Speaking on the difficulties faced by the Ministry to meet some of these conditions he said that most of the triggers are not under the control of the Ministry as they relate to other Ministries. The one which was under their control was the liberalisation for fuel price which was done in July 2018, “it involves committed people moving on a daily basis and having meetings with those who are responsible” he said. He recalled that the President at one point had to convey an emergency cabinet meeting to discuss the issue of asset declaration as it was supposed to be tabled in Parliament as the World Bank deadline was approaching. “The way the Ministry considers the importance of it is not the same way the line ministries do, for them they want money they get it, but for us we have to look for that money to give to them, so we know what it means for us, so it is only a committed government that can implement these triggers within a short period of time” he noted. The triggers he reiterated by saying are not harmful and that they help improve governance processes, “there is nothing wrong changing legislations or harmonising laws, of these triggers which one really affects the poor, you can say fuel but the rest are friendly” he said.
By Zainab Iyamide Joaque
Friday March 22, 2019.