Debt management policy, Other Management

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‘The overall objective of debt management is to minimise the cost of borrowing to the organisation.'

Required:

I. Explain factors which need to be taken into account, other than cost, when establishing a debt management policy.

II. Explain the factors to be monitored by the treasury officer before the decision of when, how much and for what period long-term borrowing should be made.

III. A number of organisations now outsource their debt portfolio to private sector organisations.

Highlight the advantages and disadvantages of outsourcing such a function.


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