The government may seek to introduce a new Debt Law, for borrowing on the international debt market, during the upcoming session of Parliament slated to begin in October.
The previous Debt Law had lapsed after it ended in October 2017 while the parliament was in recess. Opposition by lawmakers to a new law on foreign borrowing left the government with no other choice than to dip into the General Reserve Fund (GRF) to tide over the regular budget deficits that have become a norm in recent years.
The new bill that the government aims to present does not set any specific limit on the borrowing, and instead states that it is only a modified form of the old law and has been drawn up taking into account the observations made by parliamentarians when they rejected the government’s earlier bid to introduce a new debt law.
Specialists say balanced public borrowing of finance contributes to maintaining sovereign ratings, currency and state power to meet the challenges ahead, in the face of depleting amounts in the GRF. However, lawmakers contend that the idea that the GRF is depleting is an attempt by the government to scare the public and is just an excuse to introduce new debt law and increase the state’s foreign liabilities. The deputies instead called on the government to find alternatives, such as diversifying the sources of income.
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