The Public Debt Management Act was enacted May 8, 2008, by the parliament of Mauritius, and was put into effect July 1, 2008. It sought to improve the management of government debt by altering both the minister's powers and the relationship between government and finance.
Goals of Debt Management Strategy
The goal of these changes is to meet the government's borrowing needs without disrupting the market, to minimize the cost of the government's debt portfolio and to facilitate a functioning securities market, while maintaining an annual debt ceiling at 60 percent of GDP.
Effects on Minister's Power
The Public Debt Management Act places the power to raise government funds solely in the hands of the minister. The act grants him the power to raise funds both inside and outside of Mauritius, and to authorize the issue of government securities.
Effects on Government and Finance
The new powers allocated to the prime minster will alter the relationship between government and finance, allowing him to enter the government into agreements with banking institutions in any manner he sees fit, and to back any national, local or private loan with a government guarantee.
Tags: Debt Management, Public Debt, Public Debt Management, between government, between government finance, government debt