Ministry of Finance Releases 2024-2026 Medium Term Debt Strategy
The Ministry of Finance in the Territory has achieved a significant milestone with the completion and publication of the 2024-2026 Medium Term Debt Strategy (MTDS). This marks the first time such a report has been produced for the Territory, showcasing the government’s dedication to long-term territorial development planning.
A MTDS serves as a roadmap for debt management strategy with a medium-term focus, guiding the government’s borrowing policies and debt management operations to achieve specific objectives. The primary goal is to meet the government’s financing needs at the lowest cost while managing risk prudently and developing the domestic debt market.
Aligned with the 2024-2026 Budget and Medium-Term Fiscal Plan (MTFP), the 2024 Annual Borrowing Plan (ABP) included in the MTDS outlines how the government plans to finance the expected net fiscal deficit in 2024, particularly for infrastructure investments.
The strategy chosen to finance the Territory’s gross financing needs emphasizes the development of the domestic market, as well as leveraging concessional and semi-concessional borrowings and credit enhancements to minimize costs and extend the maturity of the debt portfolio.
Macro Fiscal Coordinator Michele Richmond-Phillips emphasized the importance of clarity, transparency, and accountability in debt management operations, fostering constructive dialogue with the Territory’s investor base. Acting Deputy Financial Secretary, Dr. Drexel Glasgow, highlighted the need to monitor the MTDS to adapt to changes in the global and local macro-economic environment while maintaining key debt management objectives.
The Ministry of Finance acknowledged the support and guidance provided by the Commonwealth Secretariat’s Debt Management Unit and the IMF/CARTAC team in developing the report, particularly in utilizing debt management analytical tools.
Overall, the completion and publication of the 2024-2026 MTDS demonstrate the government’s commitment to responsible financial management and sustainable territorial development.