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Government Debt To GDP Ratio To Drop

The Reserve Bank of Fiji is anticipating a Government debt to GDP ratio of 49.5 per cent for this year. The Governor of the Central Bank revealed this during the
05 Oct 2014 15:32
Government Debt To GDP Ratio To Drop

The Reserve Bank of Fiji is anticipating a Government debt to GDP ratio of 49.5 per cent for this year.
The Governor of the Central Bank revealed this during the Special Budget Forum held yesterday at the Grand Pacific Hotel in Suva.
“Government has managed to maintain its debt to GDP ratio – there was downward trajectory from 2010 in terms of debt to GDP,” he said.
“In 2011, we saw a ratio of 54.5 per cent. This year we are looking at 49.5 per cent.
“The International Monetary Fund benchmarks sustainable ratio at around 40 to 45 per cent. So this will drop further if our GDP continues to grow.”
Mr Whiteside did admit the external debt does have an exchange risk.
But, he said the good thing was this was not quite high and therefore was quite positive.
A large part of this external debt, he said, was the global bond which government took in 2011 and which matures in 2016.
“Government has already set aside sinking fund to cater for that,” he said.
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