Measure/means/Tools (methods) of Public Debt management
- Debt Contraction. This refers to the act and the terms of acquiring the debt that is the nature of the debt, maturity period, conditions of borrowing etc.
- Debt Redemption. This refers to the act of repaying back the debt that is both the principle and the interest.
- Debt Servicing (Nursing). This refers to the process of paying the interest on principle with out paying back the principle
- Debt This is where the borrower negotiates with lender to adjust the terms of debt servicing. For example redemption period, interest rate etc.
- Debt Retirement/conversion. This is where the government borrows money to pay the old debt. This works only if the borrowing conditions of the new debt are better than the conditions of the old
- Debt This is where one form of debt is converted into another form eg. Converting a short term loan (debt) into a long-term loan (debt) at lower interest rates.
- Debt This is where the lender removes the debt burden from the borrower by writing off the debt.
- Debt This is where the borrower refuses to honour the debt obligations.
- Grace This is the period between debt contraction and when debt servicing begins.
- Sinking fund. This is money set aside by the government in the budget with the aim of paying the debt.
CATEGORIES Economics
TAGS Dr. Bbosa Science
