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(Jun 16, 2009) It was reported on June 11, 2009, that Tanzania is gearing up to bail out companies hard hit by the global financial slowdown. In a speech to lawmakers and elders, Tanzanian President Jakaya Kikwete stated that the Tanzanian government has already allocated TZS1.7 trillion (about US$1.3 billion) in the budget to compensate companies for losses incurred in 2008-2009. Kiwete noted that "the government will pay straight away to the banks that lent to them [but that] we will not pay old debts that had nothing to do with the global economic crisis." In addition, the government will assist companies that are struggling to pay debs through "rescheduling and debt holidays" and will "guarantee 70% of their debts and postpone repayment for two years." (Tanzania to Bail Out Companies, THE NEW VISION [Kampala, Uganda], June 11, 2009, available at http://www.newvision.co.ug/PA/8/220/684432.)
Tanzanian tourism earnings are said to have taken a hit as a result of the global economic slowdown. The slowdown has also affected the mining industry and coffee and cotton exports. By April of this year, 48,000 people in Tanzania were out of work. (Id.)
|Author:||Hanibal Goitom More by this author|
|Topic:||Government finance More on this topic|
|Jurisdiction:||Tanzania More about this jurisdiction|
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Last updated: 06/16/2009