THE collaboration between the Treasury and the World Bank in the area of sovereign-debt management enables SA to also share its experiences with sovereign-debt management practitioners across Africa in the interest of contributing towards the development of their respective economies. On September 22, the World Bank reported that SA had "made significant progress to improve the financial risk management of its public debt portfolio, thanks to a tailor-made model designed to analyse the costs and risk factors". Before the new debt portfolio benchmarks were introduced in the 2014-15 financial year, only two strategic benchmarks informed the government’s risk management of its debt portfolio. These were a limit on the share of foreign currency debt (not to exceed 20% of total debt) and a ratio of 70:30 target for the domestic debt portfolio distribution between fixed-rate (defined as fixed-income bonds) and floating-rate (defined as T-bills or TBs and inflation-linked bonds or ILBs) de...
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