Borrowing

Risky to borrow too much: NRI

Because of the high growth rate previously, and with the commencement of the LNG project in 2014, expectations were high, leading to a number of hasty borrowing decisions by the Government.

National Research InstituteI’s Senior Research Fellow and Economic Policy program leader, Dr Francis Odhuno, said borrowing itself was not bad, as long as you know you’re going to repay your loan on time and the investments you make on the borrowed money, yield high returns. However, with unforseen shortages comes the temptation to borrow more.