The Growing Debt Burden Type of Risk Indicator Currency Risk • Share of External Debt in Public Debt(%) Refinancing Risk • Average Term Maturity of Domestic Debt(Years) • Average Term Maturity of External Debt(Years) Gross Financing Needs% of Total Share of Fixed Rate Debt in Government Securities % of Total Source: MOF Indicative Benchmark 40%(Maximum) 3.5 years(Minimum) 7.0 years(Minimum) 35%(Maximum) 25%(Minimum) The actual magnitudes of the indicator as derived by the DPCO for the 2020-21, are given in Table 12.2 below. Table 12.2: Magnitude of Risk Indicators Indicator Benchmark Share of External Debt in Public Debt 40% Maximum ATM* of Domestic Debt 3.5 years Minimum ATM* of External Debt 6.5 years Minimum Gross Financing Needs 35% Maximum Share of Fixed Rate Debt 25% Minimum *Average Term of Maturity Source: MOF 2019-20 36 4.1 7.0 31 34 2020-21 34 3.6 6.8 28 30 It is likely that the benchmarks have been set in such a manner that they have been fully complied with. This is not the case as shown next. There is need to look at the refinancing risks associated with public external debt. This requires analysis of the composition of this debt. This is undertaken in Table 12.3. 121