DEBT SITUATION Overview Debt situation as of Dec

DEBT SITUATION

Overview: Debt situation (as of Dec 2012) • Total Public Debt Outstanding : SAT 949. 8 m • External Debt : SAT 909. 8 (96% of total debt) • Domestic Debt: SAT 40 m (4% of total debt) • Total Public Debt as % of GDP : 61% • Total Debt Service 1 st half FY 12/13 : SAT 20. 61 m • Debt service ratio: ( 2. 5% of GDP)

Total Public Debt & Total Debt Service 2006 – 2011 Total Public Debt Total Debt Service 800 900 Domestic Debt 800 700 External Debt 700 600 500 External Debt 400 Domestic Debt 300 200 100 0 0 2006/07 2007/08 2008/09 2009/10 2010/11

External Debt Composition by Creditors-Dec 12 ADB 32% PRC 32% IDA 26% JICA 7% Others 3% (OPEC/EIB/IFAD) Composition by Currency-Dec 12

Medium Term Debt Strategy Objective: “To minimise the cost of debt consistent with government tolerance for financial risks” • To restrict level of public debt to less than 50% of GDP • To ensure any loans contracted are highly concessional with a grant element of at least 35%; • Effective management of SOEs guarantees • Prudent management of public debt portfolio including regular updates to Government on the country’s debt burden • Put in place a credible fiscal consolidation plan and strengthen debt management • Agreed with our Development partners on a matrix of policy actions to bring down debt to sustainable levels

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