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Objective of Public Debt Management

The main objective of public debt management is to ensure that the government's financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk. Prudent risk management to avoid dangerous debt structures and strategies is crucial, given the severe macroeconomic consequences of sovereign debt default, and the magnitude of the ensuing output losses. These costs include business and banking insolvencies as well as the diminished long-term credibility and capability of the government to mobilize domestic and foreign savings.

PUBLIC DEBT OUTSTANDING

 

31/Dec / 03

31/Dec / 04

31/Dec/05

1.Domestic Debt 

955,231

1,056,408

1,130,720

Treasury Bills

219,295

243,886

234,174

Treasury Bonds

487,504

647,746

755,966

Rupee Loans

248,414

164,758

140,562

Other 

18

18

18

2. Foreign Debt

877,831

1,047,174

1,044,204

SLDBs&FCBU

37,873

57,533

98,503

Other

839,958

989,641

945,701

Grand Total (1+2)

1,620,951

2,103,582

2,174,924

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