KOROR, Palau — The government has created a new office to help manage Palau’s national debt and oversee public investments, a move officials say is intended to strengthen financial oversight and promote long-term economic stability.
President Surangel Whipps Jr. signed an executive order last week establishing the Debt and Investment Office under the Ministry of Finance. The office will report to the Minister of Finance and will be responsible for managing government borrowing and making sure investments align with the country’s priorities.
The new office will handle tasks such as issuing government bonds, creating debt management strategies, keeping track of the country’s debt, and monitoring interest and currency risks. It will also develop policies for government investments and provide advice on potential investment opportunities.
Government officials said the goal is to improve transparency, boost technical know-how, and ensure that Palau’s growing public debt and investments are managed responsibly.
The office’s work will focus on two main areas:
Debt Management
- Issuing public debt in line with Palau’s laws.
- Advising the government on managing the national debt.
- Developing strategies to keep debt costs low and risks manageable.
- Refinancing existing debt when possible.
- Keeping detailed debt records and ensuring payments are made on time.
- Publishing reports on debt and helping with fiscal analysis.
Investment Management
- Setting policies for government investments that match national goals.
- Tracking investment performance and reporting on results.
- Advising on investment opportunities and market trends.
- Making sure the government follows consistent procedures for investments.
The new office was established under Executive Order No. 493, which took effect immediately and replaces parts of an earlier executive order issued in 2021. It is authorized by Palau’s national laws, 40 PNC Title 2 that cover debt management and the organization of government agencies.
Officials say the office will play a key role in helping the government make informed decisions about borrowing and investments, ultimately supporting Palau’s economic health and the well-being of its citizens. (By: Eustoria Marie Borja)