Considering the cost objectives relative to the risks, trade-offs must be made in this regard. For emerging market countries, it is usually cheaper to borrow in low-coupon foreign currencies than in the local currency. On the other hand, borrowing in foreign currencies usually increases the risk in the portfolio like being exposed to an increase in the foreign currency. Although borrowing at the short end of the yield curve is cheaper in most cases than long-term borrowing, the risk will increase because the short-term interest in loans are more volatile and loans need to be refinanced more often. With this in mind, a key component of developing a strategy is to analyze different borrowing scenarios and the trade-offs that need to be made. The government’s risk tolerance will ultimately determine trade-offs that will be reflected in the strategy document. Hence, this study came to investigate how management fees are being used on loans and debts through workers and the government's perspective. In order to achieve the study goal, the study adhered to the descriptive method, especially the descriptive-correlative method, which studies the correlational relationship between the variables under the study. The study sample was chosen according to the available sampling method, and the size of the study sample was (500) workers in government’s parastatals. In order to collect data from the study sample, a closed questionnaire was designed and prepared. The questionnaire consisted of (82) items. The items were distributed along two axes: The first axis investigates grounds and circumstances for granting loans, while the second axis traces how debts are managed. The validity and reliability of the questionnaire and its suitability for application and for the purpose for which it was designed were confirmed. The data collected from the study sample was downloaded through which the study questions were answered. The study concludes that several reasons are responsible for the government's application of loans. Debts and loans are inescapable routes for many governments to avoid. The study shows that there is a significant relationship and causal link between loans and debts in many governmental parastatals. Lastly and ultimately, the idea of using management fees for loans on one hand, and managing debts on the other hand, majorly came from government workers, thus influencing government’s savings, expenditures and projects.
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