The President ratifies the National Debt Bill

President Dr. Mohamed Muizzu has today ratified the National Debt Bill.

This Act was passed by Parliament during the 55th sitting of the 20th Majlis held on Wednesday, 27 November 2024.

The Act aims to provide the state with streamlined access to debt and similar financial mechanisms, both domestically and internationally, while maintaining robust financial safeguards and minimising debt servicing costs. It is designed to ensure that borrowing is undertaken responsibly, with minimal long-term impact on the country’s fiscal and financial systems, economic development, and the well-being of future generations.

The Act also outlines strategies for achieving mid-term debt management objectives, specifying the financial instruments that can be used to secure financing. Additionally, it establishes transparency mechanisms to ensure accountability in debt management practices.

To monitor Government debt and facilitate the effective implementation of the Act’s provisions, the legislation mandates the creation of a dedicated Debt Management Department. This new department will assume the responsibilities of the existing Debt Management Department within the Ministry of Finance, ensuring a more streamlined and focused approach to managing the nation’s debt obligations.

Following the President's ratification, the National Debt Bill has been published in the Government Gazette and will take effect six months from the date of ratification and publication.