State Debt Bill has been proposed to parliament today by the government, which stipulates the establishment of a dedicated Debt Management Office.
State Debt Bill has been proposed to parliament today by the government, which stipulates the establishment of a dedicated Debt Management Office.
The bill was submitted by ruling People's National Congress (PNC) MP for Funadhoo constituency Mohamed Mamdhooh.
As per the Bill, a Debt Management Office must be set up under the Ministry of Finance within six months of the ratification of the bill.
Once the Office is established, all the responsibilities, staff, resources, facilities, and privileges related to debt management which is currently under the Ministry will be transferred to this office.
The bill highlights that this Office will be managed free of political influence, in a professional manner. However, it is the Minister of Finance who will be answerable to the Parliament on all matters related to this office.
- Compiling a record and reporting on all information related to loans, sovereign guarantee, treasury loans and subsidiary loans
- Formulating a debt strategy
- Compiling an annual plan on State debt
- Undertake all responsibilities of selling securities
- Working to maintain the credit rating at an acceptable level
The bill also details ways in which sovereign guarantees can be granted, and how government and local council affiliated companies can take loans.
It further states that an audit of State debt must be conducted by an external auditor.
The State Debt Strategy must be compiled and presented to the President annually before July 15, the bill states. This strategy must be approved by the Cabinet.
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