THE BRUCE Golding administration has indicated that it would not plead with its creditors to relax the terms of repaying its domestic debt.

"This Government is not insisting upon any renegotiation of our domestic debt. We incurred a liability and we must prepare to stand up and fulfil our obligations," Golding told members of the Standing Finance Committee of Parliament yesterday.

Central Kingston Member of Parliament Ronald Thwaites had asked Golding whether the country's creditors were consi-dering relaxing the terms of debt repayment.

The prime minister said that local financial institutions holding large portions of government debt had convened preliminary talks on the matter.

Foreign banks in the island were also involved in the discussions.

"They have had discussions with us as well," added Golding, who described the talks as "exploratory".

Finance and Public Service Minister Audley Shaw earlier told the committee that the overall debt servicing cost for the government for the current fiscal year would increase by 15 per cent over the 2008/2009 year.

Debt service as a proportion of the budget is projected at 56.5 per cent, a little higher than the 53 per cent outturn last year.