The country's debt servic Ing has increased by more than 25 times since 1993 74 because of mounting debts expiry of grace periods and unfavourable exchange rate movements

At the same time the per capita debt obligation also showed an increase

Total payments for debt servicing rose from 19 mil lion US dollars in 1973 74 to 512 4 million dollars in 1993 94 It Increased by 6 9 million dollars in 1993 94 from the previous yeai s 505 5 million dollars according to latest ERD statistics

"Die per capita debt obli gallon of the country also in

. reased from only 6 59 dol lars In 1973 74 to 133 dol bars In 1993 94

This increase Is a result of (he shrinkage of the share ol grants in the external aid package and the increase of external borrowings

The amount paid in debt servicing in 1993-94 represented 20.2 per cent of the country's merchandise ex porta, but il the worker remittances and service ex ports are considered, it rep resented 12 per cent

There has lieen a gradual decrease In debt service ratio since 1986 In that year, the ratio was 30 6 per cent It fell

to 30.1 per cent in 1987 and then to 18.8 per cent In 1989. Although It rose slightly to 20.6 per cent the following year, it again dropped to 15.9 per cent in 1992.

This decrease in total debt service as percentage of export of goods and services was due to a sharp increase in export earnings. From 1.958 million dollars in 1986-87. the export earnings rose to 4.293 million dollars in 1993-94

On the count of debt servicing in 1993-94, the country had to pay 153.4 million dollars in interests and 359 million dollars in principal. The interest payment showed a downward trend. In 1987-88. the total interest paid amounted to 171.7 million dollars. It increased to 181.9 million dollars in 1989-90. But since then, it has been falling steadily. In 1992-93, the country had pay 157 million dollars in Interests.

The components of debt servicing in 1993-94 included 402.2 million dollars from medium and long term loans. 11.3 million dollars for food loans, 15 million dollars for aircraft loans, five million dollars for shipping loans and 78.9 million dollars for IMF soft-term loans.

Repayments in all these components, excepting the medium and long term loans, showed a decrease from the previous years. But debt servicing for medium and long term loans is steadily increasing mainly because of the expiry of grace periods of some heavy amounts borrowed in the late 1970s and early 80s.

The country's total outstanding external debt increased from 6139.6 million dollars in 1985-86 to 11934.4 million dollars in 1990-91. It stood at 14,561.6 million dollars in 1993-94.