The development of a Medium Term Debt Management Strategy (MTDS) for the period 2013/14 to 2017/18 is an update to the 2010/11 debt strategy and is consistent with the overall fiscal framework which aims to achieve macroeconomic stability and debt sustainability. This strategy was developed in accordance with the relevant financial management laws.
Following the comprehensive debt restructuring exercise in 2004 and successive IMF programmes1, all external borrowings have been on concessional terms, thus minimizing debt servicing costs. The government is also committed to the development of the regional securities market and will utilize this as a source of financing for short-term funding requirements.
Over the years, the increases in the level of Government’s debt are mainly attributed to exogenous shock such as natural disasters. In its efforts to respond to these natural disasters, government has to continually seek resources for rehabilitation purposes. Vulnerability to natural disasters is therefore identified as one of the major risks to achieving the debt targets. Also, in the context of a challenging global economic environment, it was necessary to undertake projects aimed at providing much needed physical infrastructure and projects which would support economic growth.
Read the entire Medium Term Debt Management Strategy 2013 - 2017 (PDF, 794 KB)