1 May 2018

Samoa's foreign debt reaches billion tala mark

5:56 am on 1 May 2018

Samoa's foreign debt reached the billion tala mark late last year according to a report.

Apia CBD the capital of Samoa.

Apia CBD the capital of Samoa. Photo: RNZI/Koroi Hawkins

The Samoa Observer newspaper reports the Chinese government is the biggest debtor with loans to Samoa worth more than $US160 million.

That's more than the combined debts to the World Bank, Asian Development Bank and Japan.

A Samoa Central Bank report for the last quarter of 2017 indicates that debt to China has fluctuated over the years and continues on that trend.

The Central Bank of Samoa in the capital Apia.

The Central Bank of Samoa in the capital Apia. Photo: RNZI/ Koroi Hawkins

The Japanese government was owed $US35 million at the same period ending December 2017.

Multilateral loans stood at $US204 million with the ADB and World Bank owed 94.2 percent of that amount.

Prime Minister Tuilaepa Sailele Malielegaoi has continued this year to downplay the state of the country's debts.

In meetings with local media he has always insisted that debts are not in the billions as some commentators have said.

Samoa Prime Minister Tuilaepa Sailele Malielegaoi conducting his weekly radio address.

Samoa Prime Minister Tuilaepa Sailele Malielegaoi conducting his weekly radio address. Photo: RNZI/Autagavaia Tipi Autagavaia

"For Samoa, we have our own Debt Management Policy that we watch very, very carefully to ensure that annually we are able to meet our debt service payments," said Tuilaepa during a recent interview.

He said it was up to Samoa to carefully gauge its capability to meet its debt obligations and to carefully watch the borrowings from international governments and institutions.

"Since all our debts are concessionary, we do not have such problems," he said.

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