Public debt management is a challenge for any country that wants to achieve and maintain stable public finances, because the financial strength of a particular country is reflected in the sustainability of financing public debt... more
Public debt management is a challenge for any country that wants to achieve and maintain stable public finances, because the financial strength of a particular country is reflected in the sustainability of financing public debt obligations. Public debt management should enable the analysis of key macroeconomic indicators (such as gross domestic product, public finances, country investment rating and many others) to look at costs and risks, but also market conditions that affect the level and structure of public debt. In Serbia, good coordination of monetary and fiscal policy measures, as well as the implementation of fiscal consolidation measures in the previous period, contributed to lower borrowing costs in the domestic and international financial markets,
while reducing premium risks. The sustainability of public finances was not endangered even during the COVID-19 risk pandemic, and Serbia's public debt remained below 60% of the gross domestic product as required by the Maastricht criteria. The use of hedging instruments, extension of the maturity of issued securities and a more favorable
currency structure of public debt contributed to this.
Look East Policy as India’s foreign policy in 1991 is the India government's effort to increase economic integration and security cooperation with other countries, including East Asian region. However, India has more bilateral... more
Look East Policy as India’s foreign policy in 1991 is the India government's effort to increase economic integration and security cooperation with other countries, including East Asian region. However, India has more bilateral comprehensive cooperation with Japan and South Korea than China which potentially provide more benefits to India. Therefore, the author questioned why India chose more close to Japan and South Korea than to China. By using the Balance of Threat theory, the author hypothesize that India more close to Japan and South Korea because China has a greater offensive capabilites and act aggressively, so India feels threatened. Then India adopted a hedging strategy which involve Japan and South Korea to face China threat.
Public debt management represents an important part of public finance in each economy and in most countries is in administrative authority within the Ministry of Finance. The Public Debt Administration is the holder of public debt policy,... more
Public debt management represents an important part of public finance in each economy and in most countries is in administrative authority within the Ministry of Finance. The Public Debt Administration is the holder of public debt policy, presenting one of the most important branches of macroeconomic policy and has stabilization and developmental function. The Public Debt Management determines the schedule, scope and currency structure of the security issuance in the domestic and international financial markets and directly affects the level of indebtedness of the country and the level of foreign exchange risk. The main objective of public debt management is to ensure that the government's financing needs and its payment obligations are met at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk. Adequate public debt management is crucial in view of the severe macroeconomic consequences of non-enforcement of public debt and the potential expansion of instability to other sectors in an economy. All this indicates the need for an adequately setting up current and future public debt management strategy and the development of instruments to reduce borrowing costs and foreign exchange risk levels. The aim of this paper is to present public debt management in selected Central East Europe countries (Serbia, Hungary, Croatia, Albania and Slovenia) and to recommend further improvement of its public debt strategies.
Strategic hedging has not been studied adequately in Middle Eastern countries. This study is an attempt to include hedging into the analysis of a small state's foreign policy choices. It contends that the hedging strategy can be applied... more
Strategic hedging has not been studied adequately in Middle Eastern countries. This study is an attempt to include hedging into the analysis of a small state's foreign policy choices. It contends that the hedging strategy can be applied to small states because it allows them to confront/respond to risks/threats at three levels: international, regional and sub-regional. It is argued that Kuwait has pursued a hedging policy by taking possible shifts in the global and regional power distribution and the lasting regional security dilemma into consideration. By strengthening military cooperation with China and Turkey, Kuwait has aimed to hedge the risks that could arise from the rise of China and Turkey in the Gulf, the US' retrenchment from the Middle East, and Saudi Arabia's aggressiveness. The main purpose of this strategy is analysed as a move to empower the regional alliance with Turkey, ensuring Kuwait's security and warding off potential risks from the changing dynamics of the Middle East.
