Govt focuses on reducing deficits

The government is now focusing on reducing deficits and maintaining an efficient market for government securities and prepaying expensive loans.

Government bonds have been mostly taken up by FNPF and insurance companies.

The total government debt stood at $3.5 billion as at September 2011 compared to $3.4 billion in 2010 and $3.1 billion in 2009.

FNPF continues to be the government’s leading local creditor holding 76% of total government bonds.

The total outstanding domestic debt at the end of September this year stood at $2.7 billion.

According to the 2012 National Budget documents released, government’s external debt level continued to increase over the years with the disbursed outstanding balance totaling $548.5 million at the end of 2010.

This is an increase of 4% when compared to 2009 levels and is mainly attributed to disbursements for on-going projects funded by the ADB and the EXIM bank of China.

As at September this year, external debt stood at $806.7 million, representing an increase of $258.2 million.

The major increase was attributed to the Global Bond of US$250 million issued in March this year.  


Story by: Vijay Narayan