Just as stabilisation funds take care of current account shocks, capital account management and market interventions are justifiable to take care of capital account shocks. BIS Review 2/2008  5  Seventh, the continued focus on financial market development would mitigate the challenge of capital flows, in the medium term. However, it is important to recognise that maturation of financial markets takes time.
Given that bulk of the country’s external debt have medium and long-term maturity, and are fixed interest rate bearing, debt repayment schedule is more manageable and financially sustainable over the medium to long term. Considering recent economic developments and significant progress in mass vaccination, we are optimistic that there is sufficient support for the country’s recovery this year and in the near term.