Communication to the market as well as predictability is critical for  credibility of the borrowing programme. vi. Consolidation of debt The maturity pattern of SDLs indicates that the redemption pressure would start increasing from 2022-23 and would continue to do so till 2026-27. The upsurge in redemption necessitates consolidation of debt.
Each State Government will have to plan reissuances, buyback and switches based on their respective maturity profiles and cash flows. This will help create volumes, facilitate trading in the secondary market and benefit SGs by lowering yields. Additionally, it will also even out redemption pressures and elongate the residual maturity of securities. Due to efforts of Reserve Bank, several states have started reissuing SDL.