'Accordingly, the share of floating debt
in total domestic debt increased to 57% at the end of March 2019 compared with 54% at the end of last fiscal year, while the share of permanent debt in the total domestic debt reduced to 26% at the end of March 2019 compared with 28% at the end of last fiscal year,' it said.
Domestic debt includes permanent debt, floating debt
and unfunded debt, whereas the external debt consists of medium and long-term, short-term, and private non-guaranteed debt, loans from the IMF and foreign exchange liabilities.
"Some have been floating debt
to keep their financial strength ratings up," he said.
His government successfully raised the equivalent of US$1.30 billion by floating debt
in European markets denominated in euros.
The cash flow statement indicates whether the company is generating positive, free and clear, cash flow--and whether that cash flow is coming from company operations or from outside sources such as floating debt
Although Directors of the Treasury were more concerned with the need to address recurring budgets deficits and the huge floating debt
, which they viewed as the cause of the fall of the franc, the Bank of France usually got its way with state authorities, including the Cartel des Gauches, mainly because its basic tenets were willy-nilly shared by all policy-makers.
The first is lower interest on floating debt
. Second, there could be significant savings for retailers who refinance their public debt.
Suppose PIC pays base rate (the interest rate banks charge to their good customers) on its floating debt
. PIC's interest expense each year will equal the base rate times $100 million.
If the manager believes that interest rates are going to rise significantly, he may want to swap for floating debt
With a general objective to have a liability portfolio mix of 70 percent fixed debt and 30 percent floating debt
, we may use derivatives to reach that goal.
As a result, the share of floating debt
in the domestic debt increased from 37% in FY16 to 54% by June this year.
The rest of the cash will be generated through foreign project loans and grants, commercial loans for state trading in food and a floating debt
from the State Bank of Pakistan.