Chair of the President’s Council of Economic Advisers David Ndii has confirmed civil servant’s salaries have been delayed.
Speaking at Citizen’s Monday Report, Ndii explained that the government was going through an operational kind of liquidity crunch.
“…It is not alarming. I think it’s something people also experience if you think about it, there’s something people call the January effect… you went and spent money over Christmas. You have school fees in January, and then you also realize, oh, my goodness, my car insurance issue is due… you probably buy health insurance and something else. Then your salary gets delayed So it’s just an operational kind of liquidity crunch,” said Ndii.
Ndii further explained that last year, the government planned to raise a billion dollars from the international market, but they went too late and were not able to secure funding.
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“The delay is not a crisis,” said Ndii.
The government is working towards filling the hole by borrowing from the domestic market and is experiencing maturities that are bunching up, causing delays in civil servants’ salaries.
He noted that the government is expecting $200 million from a syndicated loan and a further $300 million by the end of the week or the next.
He also assured civil servants that their salaries will be cleared by the end of next week.
