State directs treasury to suspend national debts to focus on Coronavirus

July 22, 2024

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CS Treasury Ukur Yattan on Government dues. PHOTO | NMG

The Government suspend outstanding debts following Coronavirus scare. The Treasury has directed its efforts to Coronavirus fight. Treasury Cabinet Secretary Ukur Yattani, says the Central Bank is focusing on making businesses afloat.

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The national government stated that it had ceased all its engagements to pay outstanding debts.
In an internal memo dated March 31, circulated by the Controller of Budget (CoB) Margaret Nyakango, the National Treasury was instructed to only process payments for government employees.

“This is to inform you that the National Treasury and Planning has put on hold all commitments, payments, and claims as the country assesses the resource requirements for COVID-19 interventions,” reads part the internal memo.

“As you are aware, COVID-19 has come with requirements not initially anticipated in the budgets. For that reason, after establishing the costs, our budgets will be reorganised through a supplementary budget,” the memo further reads.

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“The institute acknowledges that the cost of the proposed COVID-19 stimulus and incentive package will be steep. However, the cost of inaction might be more severe,” reads part of the statement.