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Terminal Annuities:
This is also considered as an important method wherein the government issues terminal annuities maturing every year a part of the debt in the serial order announced or decided by the government by a lottery system. Under this method the debt burden is cleared besides a reduction in the interest. This is something like repaying the debt amount in installments. Consequently, the burden of debt diminishes year to year and the amount would be paid by the maturity time.
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