Also under this initiative, activities such as buy-back, switching and pre-funding arrangements will be explored, not only to increase tenor, but also to reduce cost. Most importantly, we will take all steps necessary in the medium-term to establish a credible term structure of interest rates enabling to build up a long-term yield curve, while also smoothing the structure of debt. This would help reduce debt vulnerabilities. We have had a clean and unblemished track record with regard to debt repayment in the past. This must be  27  continued and every effort will be made to do so. Similar to Treasury bonds, we will also take measures to introduce a new primary issuance system for Treasury bills to further improve transparency and efficiency of government borrowings from the domestic market. In order to deepen and broaden the secondary market for government securities, we propose to establish an Electronic Trading Platform (ETP) and a Central Counter Party (CCP) arrangement along with the required legal reforms. Through this arrangement, we will establish a mechanism to disseminate information on debt instruments in the secondary market with a view to enhancing transparency and eliminating the risk of imperfect information among the agents in the market. In addition, we will take measures to increase the efficiency and effectiveness of settlement for investors by way of facilitating the Euroclearing of government securities. The government has a clear development and reform plan set for the medium-term.
In order to face the current and future challenges proactively, and to address the already identified deficiencies in the existing processes, the Central Bank, as outlined in its latest Strategic Plan for the medium term, expects to robustly strengthen its institutional frameworks by:  7  a) enhancing the monetary policy framework; b) strengthening the financial sector oversight; c) modernising payment and settlements; and, d) upgrading public debt management. The improved policy frameworks will enable the country to take advantage of greater integration, while mitigating the risks involved and increasing the resilience of the economy. In this respect, as already mentioned, we are steadily progressing towards an effective FIT framework to ensure price stability. At the same time, we are striving to promote a dynamic and resilient financial sector in order to lower vulnerabilities in the financial system. This is a priority for achieving objectives in relation to growth, employment and incomes. Modernising the infrastructure of the payments and settlements system to pave the path towards a less cash society and facilitating a digital economy are also important policy priorities in the medium term. We are also determined to strive for prudent debt management with a view to ensure debt sustainability, enhance effectiveness and transparency of the primary auction system, promote market development and minimise risks. Our policies are aligned to achieve these strategic priorities which will be instrumental in supporting the country’s economic and price stability and financial system stability.