To strengthen its debt management capability and fortify its capacity to make repayments, the government, based on article 11 of Public Debt Act, established a debt fund of the central government in the second half of fiscal year 1999 and fiscal year 2000, hereinafter referred to as the fund.
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The main objective of the fund is, without raising the outstanding debt balance, to secure stable, appropriate, and adequate  funding sources to pay down the principal of government debts and conduct interest payments. By raising new debts to pay off old debts, we are able to adjust the debt structure, to smooth out principal repayments, and to support intergenerational equity. This approach switches original debts with higher interest rates to new debts with lower interest rates. It lowers interest payments. Managing national debts through the fund creates more funding sources for the government to repay its debts.