RBI to review medium term debt strategy for GoI

RBI to review medium term debt strategy for GoI

The Reserve Bank of India is set to review the Medium Term Debt Strategy for the government with an aim to make government borrowings efficient at low over medium to long term with the right risk balance.

The central bank will review Medium-Term Debt Management Strategy (MTDS) for management of public debt of the government with an objective “to mobilise market borrowings at low cost over medium to long-term, with prudent levels of risk and a stable debt structure, while also developing a liquid and well-functioning domestic debt market.”

The weighted average maturity of primary issuances increased to 16.99 years from 14.49 years in the previous year.

Going forward, the key areas of focus of the Reserve Bank for the year 2022-23 will be smooth completion of the government borrowing programme in line with the guiding principles of debt management, while ensuring a stable debt structure and proactively taking appropriate policy actions, if necessary.