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Tanzania is one of the few countries in the MEFMI region with legislation that requires the Ministry of Finance to prepare a medium term debt management strategy annually. A debt strategy is a key element of sound practice in public debt management because it helps governments to execute debt management operations in a professional manner and thus facilitate attainment of debt management objectives of mobilizing financing at minimal cost and acceptable degree of risk. Lack of a comprehensive debt management strategy can lead to expensive mistakes, including failure to raise the desired amount of resources to fund government operations as well as higher funding costs.

 

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