COUNTY DEBT MANAGEMENT STRATEGY PAPER FORWARD BY THE COUNTY MEMBER, FINANCE & ECONOMIC PLANNING. A well-designed public debt management strategy can help the County to reduce its borrowing cost, contain financial risks and develop its domestic markets. This Strategy introduces the probability that the county has a formal debt management strategy, publishes the strategy document, and uses quantitative benchmarks to formulate its debt management strategy as affected by democratic accountability, institutional quality, official development assistance, and participation in debt management programs. Significant progress has been made in developing the debt strategy which is the first for the county. It anticipates and addresses the following objectives, • The 2014 CDMS is intended to meet the net financing of the County with concessional external financing and domestic financing. • The objective the borrowing strategy is to allow the County to meet both short-term borrowing to meet budgetary shortfalls and to provide liquidity in normal operational activities. Consideration is made of underperformance of revenues and increased expenditures due to unforeseen contingencies to allow mitigation against the effects of those occurrences. • In addition, the CDMS will allow the County to seek long term funding either locally or internationally in order accelerate economic growth, development, as well as achieve stability. This will encouraged greater confidence in the mechanism and enhance the growth of the County. • Consider the possibility of accessing the international capital markets to develop growth and spur development. • Alignment of development to the CIDP, the Medium Term Fiscal Strategy (MTFS) as well as to the National Development Strategies. • Funding priority core infrastructure and development initiatives. The CDMS will ensure that the County meets fiscal, legal, institutional and operational measures that are needed to strengthen debt management and establish a borrowing framework. These measures will also increase transparency and accountability so as to earn credit worthiness through reputation. Compliance with the Public Finance Management Act is essential to incorporate an effective borrowing framework. The County Government must continue its commitment to balance recurrent budgets and debt should not be used for recurrent spending unless on exceptional situations. Finally I would like to express my gratitude to all those who participated in the preparation of the CFSP. Evans Kaiga County Executive Secretary, Finance and Economic Planning- Vihiga County Below is a link to a copy of the County Debt management Strategy Paper.
Posted on: Mon, 10 Mar 2014 12:44:23 +0000
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