High interest cost on
This was disclosed yesterday at the launch of The
"The country's recent domestic debt challenges is characterised by high interest cost and high rollover risks whilst external debt has lower cost and risk largely due to its concessionality," stated Finance's permanent secretary
The status of the country's debt portfolio has necessitated the setting up of the debt management advisory committee to provide guidance on meeting the government's financing requirements at the lowest cost possible and prudent level of risk; guidance on meeting debt service payment obligations, and guidance on
He also said "significant progress" had been made in debt management, but there were "some ongoing debt management issues or concerns" which needed to be highlighted.
"Traditionally," he stated, "the CBG was responsible for domestic debt issuance, but now the main responsibility will be under MOFEA, which implies the need to strengthen institutional capacity.
"The domestic debt section and function are not well integrated into the current organization structure of the Directorate.
"Furthermore, government arrears to suppliers are excluded from overall public debt and there is limited information or data on contingent liabilities.
"The capacity of the Directorate needs to be strengthened given the limited staff and expertise on the ground to effectively carry out their functions."
In light of these developments, PS Jallow noted, it is achingly important to establish a
In his statement on behalf of the minister of Finance and Economic Affairs, the Director of Loans and Public Debt Management,
"Furthermore, the committee's output will also enhance improvements in Cash Management and Investment functions, and ensures that highest quality of service is delivered to the Gambians at competitive costs."
Careful management of all public debt is required both for the sake of effective stewardship of fiscal resources, and also for the sake of external stability, since external crises can have their roots in fiscal sustainability problems, said
The committee, which comprises strategic officials and departments of MoFEA and CBG, has terms of reference which ranges from reviewing the consistency of fiscal policy objectives and debt management, taking into consideration debt sustainability analysis and debt strategy, to periodically reviewing the debt portfolio's cost and risk exposure.
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