Public Debt: From Balance to Portfolio Management
The article focuses on the importance of transforming government debt management from merely measuring the size of debts to developing a comprehensive strategy aimed at improving debt structure, reducing its costs, and mitigating long-term risks. The figures show clear successes in controlling the acceleration of debt interest growth, with the growth rate of domestic loan interest declining from 21.3% in 2024 to 2.5% in 2025. The annual increase also decreased from 223.7 million dinars to 32.4 million. Additionally, the growth rate of external debt slowed from 24.4% to 6.7%. The strategy relies on replacing high-cost loans with long-term financing, reducing reliance on borrowing to fund current expenditures, and focusing on boosting economic growth and strengthening domestic revenues. The goal is to establish a sustainable institutional framework for debt management that links fiscal policies to economic growth and reform, balancing funding costs with the effectiveness of spending. This approach aims to enhance the economy's capacity to bear debt and reduce future dependence on it.
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