The Law establishes the powers of State authorities in the field of public debt management.
The Ministry of Economy and Finance is the authorized body in the field of public debt management.
According to the Law, public debt management consists of:
- development of a public debt management strategy;
- state borrowing;
- management of funds borrowed by the state;
- risk management related to public debt;
- restructuring of public debt;
- re-crediting of funds borrowed by the state;
- registration and provision of state guarantees;
- maintaining a list of state loan agreements and state guarantees;
- accounting and reporting of public debt;
- ensuring the servicing of the state debt and the execution of the state guarantee.
Accordingly, the government debt management strategy is approved by the Cabinet of Ministers together with the fiscal strategy for a period of 3 years.
The state debt includes the state internal debt and the state external debt and can be short-term (for up to 1 year), medium-term (for a period of 1 to 5 years) and long-term (for a period of 5 years or more)
The amount of public debt should not exceed 60 percent in relation to the annual forecast indicator of gross domestic product.
The law comes into force 3 months after its official publication, the Ministry of Justice reports.
