On the other hand, debt servicing to current expenditure has jumped up from 35 percent in FY08 to 42 percent in FY13. This has resulted in average real economic growth remaining around 2.9 percent during the last five years. In fact the stock of government’s domestic debt i.e. borrowings has almost tripled since FY08 to reach Rs9.5 trillion as of end FY13.
At the same time, the programme foresees the strengthening of the supervisory and regulatory framework of the banking sector, including, inter alia: the adjustment of the legal framework governing the restructuring and resolution of credit institutions; the reinforcement of the Deposit Guarantee Fund (FGD) and of the Mutual Agricultural Credit Guarantee Fund (FGCAM); and the introduction of amendments in the Insolvency Code to support effective rescue of viable firms.