President Dr. Mohamed Muizzu has today ratified the Public Debt Bill. This bill was passed by the People’s Majlis in its 55th session of the third term of this year, held on Wednesday, November 27, 2024.
One of the main objectives of this law is to empower the government to bpower the government to borrow on behalf of the state, both domestically and internationally, in the most cost-effective manner while considering debt risks, to meet various state needs. The bill stipulates that state borrowing, maintenance, and management will be done considering the impact on the country’s economy and future generations, and in a way that sustains the country’s economic self-sufficiency, fiscal system, and financial system in the long term. The bill also outlines the formulation of a medium-term debt strategy for the state and the principles for implementing this strategy, as well as defining the debt instruments that can be used by the state.
Under this bill, a “Debt Management Department” will be established within the Ministry of Finance within 6 months of the law coming into effect. This department will take over all responsibilities, resources, and obligations of the current “Debt Management Department” of the Ministry.
Following the President’s ratification, this law has been published in the Government Gazette today. The law will come into effect 6 months after its passing, ratification, and publication in the Government Gazette.
