President Dr. Mohamed Muizzu has ratified the National Debt Bill. The bill was passed by parliament on November 27, 2024.
The Act aims to facilitate streamlined access to debt and similar financial mechanisms, both domestically and internationally, while maintaining robust financial safeguards and minimising the costs associated with debt servicing. It is designed to ensure that borrowing is undertaken responsibly, with minimal long-term impact on the country’s fiscal and financial systems, economic development, and the well-being of future generations.
Furthermore, the Act outlines strategies for achieving midterm debt management objectives, specifying the financial instruments that can be used to secure financing. It also establishes transparency mechanisms to ensure accountability in debt management practices.
To oversee the government debt and ensure the effective implementation of the Act’s provisions, the legislation mandates the creation of a dedicated Debt Management Department. This new department will assume the responsibilities of the existing Debt Management Department within the Ministry of Finance, thereby streamlining and enhancing the approach to managing national debt obligations.
Following the ratification, the National Debt Bill has been publicised in the Government Gazette and will take effect six months from the date of ratification and publication.