Samoa’s external loans from the People’s Republic of China (P.R.C.) increased by $28.9 million in the December 2021 quarter when compared to the corresponding quarter of 2020. 

The country's new debt figures were revealed in a report titled “Government Finance Statistics” published by the Samoa Bureau of Statistics (S.B.S.) this week. 

The total Government debt at the end of the December 2021 quarter stood at $1 billion and is a decrease of $9.8million or 1 per cent compared to December 2020. 

According to the report 99.7 per cent of the $1 billion debt is external loans with bilateral and multilateral partners, while the remaining 0.3 per cent consists of domestic loans with local banks and financial institutions.

“Loans based on multilateral agreements at the end of the quarter amounted to $500.2 million, declining by $29.2 million on a yearly basis,” reads the report.

The report also shows that the majority of the Government's borrowings were from the World Bank Group and the Asian Development Bank, amounting to $285.1 million and $193.0 million respectively. 

And loans based on bilateral agreements with the Governments of the People’s Republic of China (P.R.C.) and Japan (J.I.C.A.) amounted to $498.4 million altogether.

“Of this amount, loans from the P.R.C. amounted to $419.3 million and $79.2 million was from J.I.C.A.," reads the report. “Government loans with P.R.C. increased by $28.9 million whereas loans from J.I.C.A. went down by $6.2 million compared to the corresponding quarter of 2020.”

In addition, the report stated that the domestic debt amounted to $2.9 million for the quarter under review. 

“It decreased by $3.4 million (or 54.0 per cent) compared to the December 2020 quarter.”

The report also showed that the central budgetary Government operations for the December 2021 quarter recorded a net operating balance deficit of $1.4 million, due mainly to an increase of $26.9 million or 16.9 percent in operating expenses. 

“Major contributors to the increase were grants to public corporation, use of goods and services, compensation of employees and social benefits with respective changes of 9.5 percent, 4.0 percent, 2.9 percent and 2.3 per cent respectively," reads the report. 

“The outturn was expected in light of the COVID-19 pandemic commitments.”

Also, the overall balance (net lending/net borrowing) recorded a deficit of $1.6 million in the December 2021 quarter decreasing by $30.6 million when compared to December 2020. 

“This result reflects significant increase in government expenditures recorded within the period under review," the report further reads. 

“Acquisition of non-financial assets was $0.2 million, the lowest ever recorded in the last ten consecutive quarters.

“The overall balance together with the net acquisition of financial assets and liabilities resulted in a drawdown of $4.2 million of government resources in the banking system in the December 2021 quarter.”

The S.B.S. report provides the latest available information on the Government's fiscal operation on a quarterly basis and updates on the COVID-19 pandemic, hence reflecting its impact on revenues as well as expenditures.