Rwanda to maintain prudent financial policies – Minister Gatete

Despite investors’ appetite for Rwanda’s sovereign debt, the government will not rush into acquiring more debts but will instead maintain prudent economic policies to keep its debt levels in the green, the Finance Minister has said. Amb. Claver Gatete told a news briefing at the Ministry of Finance and Economic Planning today that the country has a “responsible” government that cannot afford to spoil investors’ confidence by failing to pay back the money obtained through the recent successful issue of its first sovereign bond. When Rwanda issued its debut Eurobond of US$400 million at the Irish Stock Exchange last week, it was oversubscribed at more than US$3.5 billion. “We have to be selective on what kind of loans we acquire and how much,” Amb. Gatete said. More borrowing can only happen if more profitable projects are identified, he reiterated. Rwanda’s debt, which has to be paid back by 2023, carries a coupon of 6.625 percent which is the annual interest the government will be paying for the US$400 million(around Rwf 250bn) it has acquired by issuing the bond.

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Rwanda to maintain prudent financial policies – Minister Gatete