Shortening of Domestic Debt Maturity At the end of 2023, the average maturity of domestic debt was 65.1 months.
By January 2026, it is projected to fall to 33.8 months.
This reduction aims to lower borrowing costs and improve the risk profile.
Debt Composition 5‑year fixed‑coupon bonds: 20.4% (2012‑2024), 14.2% (2025) 10‑year fixed‑coupon bonds: 14.3% (2012‑2024), 1.9% (2025) Variable (FRN and CPI) bonds: 22.4% (2012‑2024), 9% (2025) TLREF‑indexed bonds: 10.8% (2020‑2024), 20.9% (2025) Policy Objectives The Ministry seeks to maintain the sustainability of the debt stock and the cost‑risk balance by taking into account market conditions and investor demand.
Factors considered include budget financing, cost, maturity, debt‑service profile, and the health of the yield curve across different maturities.
Correct Information Statement The statement was issued to correct misunderstandings about the borrowing policy and to inform the public accurately.
Treasury and Finance Ministry: Borrowing Policy Guided by Strategic Criteria
The Ministry of Treasury and Finance explains that its borrowing decisions are based on strategic criteria such as maturity structure, interest composition, and risk profile, aiming to reduce costs and improve risk by shortening average maturity and adjusting the bond mix.
Sources
- Sabah · baglanti