Debt Facts

1. Total debt stock at the end of December 1997 was $8 billion U$. which is equivalent to 123% of GDP - out of which $2.9 billion US, about four times the the countryu's annual export earnings was in arrears.
2. If Tanzania was to pay all the outstanding debt arrears of $2.9 billion US and thereafter remain current, the debt service ratio would be about 260%.
3. The total debt stock profile shows that more than 90% of external debt is owned by the government.
4. The per capita income is $200 US per person per year (revised 1997 Natioan l Accounts Estimates), while per capita debt is $281 US per person per year.
5. In 1996 the Governemnt of Tanzania used $5US per person for debt servicing while spending only $1.40 US per person for education.
6. Though macro economic indicators are improving at the national level, the debt burden is increasing.
7. Literacy levels during the 1970's and 80's were 85%, by the early 1990's it has dropped to 68%.
8. The Tanzania external debt burden is being underestimated by the Highly Indebted Poor Countries (HIPC) initiative of the World Bank and the IMF.
9. The Government of Tanzania established a National Task Force in November 1996 to formulate the national debt reduction strategy.
10. The Government of Tanzania launched officially the Multilateral Debt Fund on March 18, 1998 to facilitate the servicing of the multilateral debt, with a commitment that the revenue recieved from servicing this debt will go to supporting the social sector and the infrastructure.