The National Debt Bill aims to streamline the state's access to domestic and international debt and financial mechanisms while ensuring financial safeguards and minimizing debt servicing costs.
President Dr Mohamed Muizzu today has ratified the National Debt Bill.
The bill, passed by parliament on November 27, aims to streamline the state's access to domestic and international debt and financial mechanisms while ensuring financial safeguards and minimizing debt servicing costs.
The Act stipulates responsible borrowing, limiting the long term impact on the country's fiscal systems, economic development, and the well being of future generations.
It also includes strategies for achieving mid term debt management objectives and specifies the financial instruments that can be used for securing financing, while also mandating transparency mechanisms to ensure accountability in debt management practices.
The Act mandates the creation of a dedicated Debt Management Department which will take over the responsibilities of the current Debt Management Department within the Ministry of Finance, ensuring a more streamlined and focused approach to managing the nation's debt obligations.
The bill has been published in the Government Gazette and will come into effect six months after its ratification and publication.
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