Treasury eyes currency, bond swaps to ease debt load

The National Treasury building.

Photo credit: File| Nation Media Group

The National Treasury is considering currency swaps and resuming its bond switch programme to manage the mounting public debt and ease repayment pressure amid faltering domestic revenue collections.

A currency swap is a financial agreement between two parties to exchange principal amounts and interest payments in different currencies over a specific period. A bond swap involves selling one debt instrument and using the proceeds to buy another one.

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