Factors government should consider before borrowing

      

Factors government should consider before borrowing

  

Answers


Peter
i) The interest rate charged by lenders
ii) The sources/ available lenders and their other terms /conditions/ SAPS-Structural adjustment programs required
iii) the crowding out effect/ effect of lowering funds for investment/ borrowing by private sector
iv) The amount required for the project
v) The nature of project for which the funds are required: is it reproductive or dead weight expenditure?
vi) the debt already being serviced/ the accruing public debt

Musyoxx answered the question on March 10, 2018 at 08:55


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