1. FIJI’s PUBLIC DEBT Mandate to audit Public Debt Constitution Audit Act Finance Management Act 2004 Accounts and Records Borrowing Fund Account-St. of Receipts and Expenditure

2. 1.Role of Fiji SAI Analyse the Borrowing Fund Account Examine Reported Public Debt Foreign and domestic components Changes in debt balances during the period Financial costs Components of internal control – authorization, initiating and recording transactions

3. Role of Fiji SAI contd. Verification of debt records Compliance Internal Controls Laws and Regulations Analyse the Borrowing Fund Account Areas of Public Debt Management examined- Contract terms and conditions of borrowings Service (interest, discounts, and expense) payment procedures Authorizations Revaluation of foreign loans Applications of resources from foreign lending agencies Regulatory requirements for granting government guarantees Contingent Liabilities

4. 2.Composition of Outstanding Borrowings 2007

5. 3.Borrowing in the Last Ten Years YearDomestic Bond $ % of Total Borrowing Treasury Bills $ % of Total Overseas Loan $ % of Total Borrowing Total $ 19981,016,273,2507843,790,0723245,557,713191,305,621,035 19991,046,595,65076117,231,6719206,036,450151,369,863,771 20001,158,595,6508172,449,8385207,697,167141,438,742,655 20011,302,595,65077176,604,61310206,889,315121,686,089,578 20021,501,095,65080196,432,45310193,505,879101,891,033,982 20031,682,718,65079276,925,83813174,125,75282,133,770,240 20041,986,515,65087126,987,8226168,665,37972,282,168,851 20052,121,422,65087136,018,3876164,050,92472,421,491,962 20062,300,672,65080141,311,6875416,729,200152,858,713,537 20072,196,208,15080141,160,4335397,103,384152,734,471,967

6. 3.1Govt. Borrowings Outstanding From 1998 - 2007

7. 4.Deficit to be Financed from Borrowings 2006 $348,146,225 2007 $306,858,903

8. 5.Overseas Loan Raised in 2007 Yearly Overseas Borrowings

9. 5.1Composition of Outstanding Overseas Loans 2007 Composition

10. 6.Treasury Bills Raised Composition of Treasury Bills

11. 7.Flexibility – Interest Bite Percentage of Debt Repayments to Total Revenue

12. 8.Vulnerability Measures the degree of dependence of Government on sources of Borrowing outside its control. One of the measures is the comparison of overseas loan to the total debt.

13. 8.1Overseas Loan Percentage to Total Government Debt Trend

14. 9.Sustainability Government Borrowing as a % of GDP

15. 10.Summary & Conclusion Total debt outstanding decreased by $124m or 5% in 2007 compared to 2006. The Deficit to be financed from Borrowing also decreased by $41.3m or 12% compared to 2006 Overseas loans raised in 2007 also saw a decrease of $19.6m o5 5% compared to that of 2006, and The decrease of 4% in the Public debt ratio as a % of GDP indicates a favorable sustainability in debt.

16. Thank You Questions if Any!!!