Pregledni rad
An Exploratory Review of Government Debt Service Management in South Africa
Talknice Saungweme
orcid.org/0000-0003-1255-7837
; Department of Economics, University of South Africa, Pretoria, South Africa
Nicholas M. Odhiambo
orcid.org/0000-0003-4988-0259
; Department of Economics, University of South Africa, Pretoria, South Africa
Sažetak
This paper provides a critical review of public debt service dynamics in emerging economies using South Africa as the case for the period from 1960 to 2015 – highlighting on fiscal and monetary reforms, public debt service trends and public debt service management challenges. The debt service management reforms were divided into fiscal, monetary, institutional and legal framework rearrangements. The paper revealed that public debt service burden in South Africa lessened after 1994 due to some significant improvements in macroeconomic fundamentals, as well as due to fundamental changes in the composition of government debt portfolio. Among the discovered public debt service management strategies adopted in South Africa are: (i) the broadening of government debt securities, (ii) the embracing of sound contingent liability management policies, and (iii) the opening up of new foreign sources of finance to reduce public borrowing on domestic capital markets. To promote the stability of domestic capital markets and also enhance public debt repayment capacity, the paper recommends the country to continuously improve public debt management by increasing its industrial diversification pace in order to expand and maintain a sustainable government revenue base. In addition, the paper recommends a continuous restructuring of public debt service portfolio in order to minimize possibilities of maturity mismatches, domestic liquidity crises and build-up of inflation pressures in the economy.
Ključne riječi
Public debt service; reforms; trends; South Africa
Hrčak ID:
216264
URI
Datum izdavanja:
31.12.2018.
Posjeta: 861 *