Public Debt Management

According to international monitory fund (IMF), public debt management refers to the strategies employed by the country's national authority to manage external debt.
 In other word, it is a process of managing or minimizing government expenditures and raising required amount of funds to meet government's objectives.
 Government of any countries borrowed funds from internal source that is within the country and if government required more funds then they borrowed from external source that is outside the country.

Higher national authorities issued various instruments regarding public debt management which are as follows;

Instruments of public debt management

 Treasury bill: On the behalf of the government of Nepal, public debt department of NRB issued short term money market for the short term financial requirements.
 Development bond: Government of Nepal issued development bonds in order to raise fund for financing several developmental projects in several regions.
 National saving certificate: NRB issued these saving bonds which bears high interest rate with fixed maturity period to general public and B&FIs.
 Citizens saving certificate: It is issued only for the citizens of Nepal. Citizens who hold such certificate can receive loan by putting this certificate from the banks.
 Foreign employment bond: To raise domestic debt, NRB issued such bonds to the immigrant workers with interest.
 B&FIS: Except these bonds, government of Nepal borrowed funds from the B&FIs. NRB has determined the limits for B&FIs to give loan to the government.
 Individual: If necessity occurred, government borrowed funds from the general public to raise the funds by issuing promissory notes.
 International organization: In case of emergency, government of Nepal can borrow funds from the international organizations such as World Bank, IMF, ADB etc. on low interest rate.