by Grace Chekai

The Ministry of Finance and Economic Development has issued a Debt Dialogue tool document, which seeks to highlight how Treasury will meet its payments obligations at the lowest cost.

The document states, “as stated in the Public Debt Management Act, the objective is to ensure that Government`s financing needs and payment obligations are met at the lowest possible cost over the medium to long term, with a prudent level of risk, and to promote the development of the domestic debt market.”

The document also stated the objectives of debt management, which is to maintain a comprehensive, updated and accurate public debt data base, to institute robust and sound institutional and legal framework for public debt management and to continuously re-engage and expedite debt resolution with all creditors.

The strategy will focus on central Government debt, both domestic and external, including guaranteed external and domestic debt, to clear external debt arrears and to develop the domestic debt market and to successfully clear the country`s external debt arrears and unlock new external financing for inclusive and sustained growth.

The document also stated the external and domestic management committee, which is chaired by the Secretary for Finance and Economic Development who will then report to the Minister of that ministry.

It further stated the mandate of the external and domestic management committee, which is to advise the Minister on all policy matters relating to public debt management, perform any other functions assigned to it by the Minister in connection with the public debt among other functions.

Economic analysts have commended this document saying that this system will help Treasury in getting over debts and it will be on the right path to improve both the Treasury`s credit and financial well-being.