Cabinet clears to draft State Loan Management Act

The Cabinet of Ministers approved to direct the Legal Draftsman to draft the Bill of the State Loan Management Act to enhance fiscal transparency and efficiency. 

The resolution put forth by the acting Finance, Economic Stabilisation and National Policies Minister highlighted the Government’s commitment to institutional reforms in the financial sector. 

The establishment of a State Loan Management Institute has been prominently featured in the supplementary Budget of 2022, underscoring its critical role as a cornerstone of institutional reform. This initiative places a strong emphasis on improving loan management practices and elevating transparency within the country’s financial framework. 

The importance of transparent and well-managed loan processes has received resounding recognition, even within the Extended Fund Facility by the International Monetary Fund (IMF). 

Technical expertise and support are extended by both the IMF and the World Bank, guiding the establishment of the proposed State Loan Management Institute and ensuring it aligns with international best practices.