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Debt Management Office to be launched this year

ABU DHABI - The Minister of State for Financial Affairs Obaid Humaid Al Tayer has said that the Debt Management Office (DMO) will be established in the country this year, after the public debt law is promulgated.

Speaking to reporters on the sidelines of the Public Debt Management Conference, organised by the Ministry of Finance in the capital, the minister highlighted the importance of public debt management, as countries face challenges in financing their development programmes, especially in light of the global financial crisis.

Meanwhile, the Director-General of the Ministry of Finance, Younis Haji Al Khouri, said that the public debt law is in the process of being approved.

“It has just been adopted by the Federal National Council. Now, it will be sent to the cabinet which will discuss it and in the final stage it will be sent to the Rulers for approval,” the director-general said.

Asked about the possibilities of any bond issue at the federal or emirate level in the year ahead, Al Khouri said that Abu Dhabi has its plans to raise bonds, like other emirates. “But the federal government has no plans to issue a bond this year,” he said.

However, about plans for launching a debt paper in year 2011, the director-general said it depends on the advisors, who will evolve a strategy in this regard and would advise on the size and the timing of any bond issue.

Responding to question on any contingency plans in the wake of debt crisis in Greece, Al Khouri said the UAE will not be that much impacted by the situation emerging in the 
European country.

Earlier, in his speech to the conference Al Tayer said that launching a public debt market requires a suitable legal environment, sound fiscal policies, in addition to prudent risk management, rational governance principles and treasury 
management.

According to Bank of International Settlements, the minister said, that the global bond market in second quarter of 2009 stood at $2.5881 trillion.

The GCC nations issued bonds valuing $99.4 billion, taking into consideration that the bonds and sukuks in the first ten-months of 2009 totaled $60.8 billion. 


haseeb@khaleejtimes.com