Unit set up by UAE to handle public debt

A unit for managing public debt has been set up by the Ministry of Finance of UAE.

According to Nadia Sultan, of Department of Financial Operations, this unit shall ensure the availability of finances at the least cost and at acceptable risk levels which would develop a healthy debt market.

One of the three units of the Public Debt Management Office (PDMO) shall be answerable to the Finance Minister, and shall be responsible for forming various strategies and financing scenarios and the implementations of the plans of the Debt department.

The statement of the Ministry of Finance of UAE stated, "PDMO will set up a clear and realistic debt management strategy with an underlying aim to develop alternative funding or asset management scenarios to match market opportunities and funding needs, simultaneously evaluating cost of funds, asset yield and risk ratios."

The Ministry further added that the PDMO's recommendations on transactions shall be transparent and accountable and said: "It will prepare its borrowing plans, issuance calendars of government securities and annual reports on the Debt Management Office's activities, to ensure investors can reasonably anticipate the objectives, goals, size, and dates of maturity of debt."