By Tabora Bojang
Finance minister Seedy Keita has disclosed that the higher interest rates of the Central Bank has caused an increase in the country’s debt interest expenditure which grew by 18 per cent to reach D3.10 billion in the first half of 2026 financial year.
Of this amount D599 million was paid on external debt interest while D2.5 billion was paid on domestic debt interest.
Minister Keita made this disclosure while presenting the national budget implementation for the period 1st January to 30th June 2026.
Asked about the reasons for these increase in debt interest as well as measures being taken by the government to minimise it, Minister Keita replied that the elevated increase of 18 per cent is on the backdrop of the current domestic debt stock as well as the heightened interest rates of the Central Bank of The Gambia.
He said prior to the past few months, Central Bank interest rates were “hovering around 17 per cent before the bank reduced it to 14 per cent” recently.
Keita pointed out that those high interest rates added to the domestic debt stock of over D50 billion was what gave rise to the increase in the domestic interest expenditure to D3.10 billion.
According to him the government is committed to minimise domestic debt interest payment by ensuring that its domestic borrowing is kept barest minimum possible.
Minister Keita also clarified that the current domestic debt stock of over D50 billion was not entirely borrowed by the current government. “We still have legacy debts that we are still servicing including a 30-year bond of D7.95 billion. We also have the Nawec bond. So the total legacy bond is about D10 billion and these are not new borrowing but from the previous regimes,” Keita stated.
On the key highlights of the government local fund budget performance from January to June, the minister stated that total revenue excluding grants amounted to D15.35 billion stemming mainly from an increase in tax receipts.
Total GLF expenditure and net lending increased to D15.42 billion. He said total expenditure exceeded total revenue to create a gross deficit of D68.86 million.
According to Minister Keita, the main drivers of expenditure performance are personnel emoluments at D5,062.052; use of goods and services at D2,640.605; subsidies and transfers at D3,615.533; and capital expenditure at D1,000.351.