The value of a devalued tala

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Dear Editor,

Re: The consequences of debt 

A devalued Tala can have some positive spinoffs. 

1 - It makes it more affordable for tourists (the second highest income earner after repatriation of overseas funds)

2 - Provided the infrastructure remains sound (e.g compliance to international laws, low corruption, good policy governance) it can actually encourage foreign investment

3 - Exports from Samoa will suddenly look like a bargain

I agree with Pika T that loan defaulting is not a good situation to be in. It affects the credit rating of the nation, which in turn limits access to future funds. 

The country should be run as a business. 

Most businesses do take loans to fund projects and that is not a bad thing, but there must be accountability, vision, and financial justification in the process. 

In the commercial world that I operate in, a failing business closes down. That is not an option for Samoa.

Sitivi

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