The Ministry of Finance marks a significant milestone, with the completion and publication of the 2024-2026 Medium Term Debt Strategy (MTDS). This report is the first of its kind for the Territory and building on the 2023 base year, it demonstrates Government's commitment to long-term territorial development planning.

A MTDS presents a debt management strategy with a medium-term focus that would guide the government’s borrowing policies and debt management operations to achieve its debt management objectives. As designed, the MTDS aligns with the primary debt management objective of meeting government’s financing needs at the lowest cost, consistent with a prudent degree of risk and with the secondary objective of developing the domestic debt market.

The 2024 – 2026 MTDS is aligned with the 2024-2026 Budget and Medium-Term Fiscal Plan (MTFP). The 2024 Annual Borrowing Plan (ABP) forms a part of the MTDS, and shows how the Government plans to finance the expected net fiscal deficit in 2024, created by the planned large investment in the Territory’s infrastructure.

The optimal strategy selected to finance the Territory’s gross financing needs is linked to the development of the domestic market. In addition, it maximises opportunities for concessional and semi-concessional borrowings and credit enhancements to contain costs and lengthen the maturity of the Territory’s debt portfolio.

Macro Fiscal Coordinator Michele Richmond-Phillips said, “The preparation and publication of the 2024-2026 MTDS affirms the Government’s commitment to promoting clarity, transparency and accountability in its debt management operations and facilitating constructive dialogue with the VI’s investor base.”

Acting Deputy Financial Secretary, Dr. Drexel Glasgow added that, “The Government will monitor the MTDS due to continued changes in the global and local macro-economic environment to maintain consistency with key debt management objectives.”

This report would also not be possible without the ongoing technical assistance and capacity building support and guidance, particularly in the use of the various debt management analytical tools, provided by the Commonwealth Secretariat’s (COMSEC’s) Debt Management Unit and the IMF/CARTAC team.