The primary debt management objective of the Government of Saint Lucia is to secure stable and consistent levels of financing for the budget while fulfilling payment obligations at minimal cost, within prudent risk thresholds. The Medium-Term Debt Strategy (MTDS) outlines funding sources guiding government borrowing activities. The strategy document is updated annually to enhance transparency, borrowing predictability, and bolster public debt management capabilities.
The GOSL continues to procure funds from conventional channels like the RGSM and domestic financial institutions. However, accessing low-risk, low-cost debt financing remains challenging globally, compounded by slow regional economic growth, heightened fiscal pressures, and increased debt expansion amid ongoing global events.
The timeline of this MTDS spans three years, from FY2024/25 to FY2026/27, with annual updates to evaluate metrics and incorporate any changes in macroeconomic, fiscal, and debt management policies. Debt categorization in the MTDS distinguishes between domestic debt, denominated in XCD, and external debt, denominated in various foreign currencies (USD, EUR, SDR, and KWD). The analysis scope encompasses Central Government debt, with government-guaranteed debt in the public debt portfolio representing a negligible 6.1 percent (as of December 2023), posing minimal risk to the portfolio's composition.
Filename: 2024-2027-SLU-MTDS-Revised.pdf | Size: 658.80 KB
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