Question Tag: Public Debt Management

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PSAF – May 2022 – L2 – SA – Q5 – Public Sector Reforms

Discuss principles of debt rescheduling and forms of debt conversion.

Rescheduling is the rearrangement of payment terms of debt with respect to new maturities, grace period, and readjustment of the interest rate. The essence is to facilitate convenience in debt repayment.

Required:
a. Identify and explain TWO main principles of debt rescheduling. (5 Marks)
b. Discuss FIVE forms of debt conversion. (10 Marks)

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PSAF – May 2022 – L2 – SA – Q5 – Public Sector Reforms

Discuss principles of debt rescheduling and forms of debt conversion.

Rescheduling is the rearrangement of payment terms of debt with respect to new maturities, grace period, and readjustment of the interest rate. The essence is to facilitate convenience in debt repayment.

Required:
a. Identify and explain TWO main principles of debt rescheduling. (5 Marks)
b. Discuss FIVE forms of debt conversion. (10 Marks)

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