Ambassador Clever Gatete who is the Minister of finance told reporters that the DGP based debt of 45% is not alarming as Rwandan economy keeps growing in different sectors and that it becomes seriously alarming when it goes above 50%.
He said that after holding talks with the IMF representatives who are in Rwanda to assess and advice Rwandan officials on how its economy can keep improving.
The IMF’s report on Rwandan economy indicates that it has significant debt to overcome if it has to keep is economic growth increasing.
Experts from the IMF warned that economic officials should remain vigilant as to redress the debt.
However the Rwandan National Bank has for sometimes ago affirmed that the rate of the Rwandan GDP based debt does not exceed 35%.
The International Monitory Fund revealed that the real rate of the Rwandan GDP based debt is 45% according to its statistics about last year, 2016.
Financial previsions say that the Global Domestic Product of Rwanda in 2017 will reach as least 8.918 US dollars.
Laure Redifer who leads the IMF delegation in Rwanda told Umuseke that Rwandan huge investment in Business Tourism Hub is a good endeavor to cope with future economic imperatives.
These kind of investments for future economic self reliance are of remarkable importance, she said.
She however advised Rwandan officials to be cautious in avoiding contracting huge debts as they can hamper the monetary stability of national economy.
Despite these alarming warnings of the IMF, Rwandan Minister of finance Amb Clever Gatete said that the 45% of GDP based loans are not as alarming as they are said to be.
He claimed that debts become alarming when they are above 50%.
Amb Gatete said that debts increase due to various circumstances including inflation, global economic fluctuations, among other issues.
Even though the International Monitory Fund affirms that the debts that Rwanda has contracted are alarming, it lauds its economic path that has kept it to the first position as the first growing economy in the Sub Saharan Africa.
Laure said that although Rwandan economy endured serious challenges including low agricultural production due to weather related issues, trade imbalance, among others, it stood up.
The Governor of the National Bank John Rwangombwa said that agricultural low production has impacted on the increase of the national economy as it represents 30 per of the global economy and it employs not less than 70%.
It has impacted on the purchasing power of Rwandans whose agriculture is the main income generating activity.
The Rwandan economy is said to increase at the rate of 6% this year.