Developing countries, especially in Africa must establish appropriate and dynamic legal frameworks and structures that are responsible for coordinating and managing public debt. All public loan contraction and debt management rules and regulations must be anchored on constitutional provisions and other precise pieces of legislation defining how public loans should be obtained, used and serviced. Contracted debt should be used to promote economic growth, national development and poverty reduction. Government borrowing from either domestic or external sources requires that there is a well established legal basis for contracting debt. A clear legal and institutional framework governing the mobilization, management and monitoring of resources that have been raised through
borrowing should be in place. This policy brief focuses on the adequacy and effectiveness of the governing frameworks on loan contraction and debt management in Mauritius.
