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Management of refinancing risk

Refinancing risk is the risk that debt will have to be refinanced at an unusually high cost or, in extreme cases, cannot be refinanced at all.

  • For managing refinancing risk, outstanding short-term debt (maturity under 1 year) cannot exceed 25% of the State’s budgeted expenditures (total of costs and investments).
  • The repayments of long-term debt obligations (final maturity greater than 1 year) in a year should be spread out so that the annual repayments of debt are not more than 5% of the forecasted GDP each year.

Graph: Duration and average term to maturity of the outstanding debt                                                                                                          
*Data from 31.10.2021


Last updated: 5 November 2021