In ongoing efforts by the Government of Tonga (GoT) for prudent debt management and development of current practices going forward. This document is the first MTDS produced by the Ministry of Finance (MOF), which provides an overall guidance for the best management of GoT’s debt in the medium term.
The GoT’s debt management objective is to maintain sovereign debt within levels that are sustainable over time. This requires regular monitoring of debt levels against commonly accepted debt targets or thresholds established by multilateral institutions while also ensuring that any financing requirements are met at low cost with a minimum degree of risk in the medium term. This general objective and approach is also reflected in the Tonga Strategic Development Framework (TSDF) of 2010-2014 and the MoFNP’s Corporate Plan (2014/15-2016/17).
This is the first Medium Term Debt Strategy (MTDS) that government adopts to manage its public debt1. The strategy is a document that describes the plan that Government intends to implement to achieve this composition. Medium-term planning horizon of the Government is usually for 3 to 5 years.
This MTDS is in line with the approved budget for current FY 2015/16. The Budget theme follows the National and GoT themes, of: “A More Progressive Tonga”: enhancing our inheritance.