What key aspect does the debt policy aim to limit?

The debt policy primarily aims to limit outstanding debt levels to ensure that the organization maintains a sustainable financial position. By establishing thresholds for the amount of debt that can be issued, the policy helps to manage the entity's financial risk and avoid over-leveraging. This is crucial for maintaining financial health and ensuring that the organization can meet its obligations without jeopardizing future operational budgets or financial integrity.

Furthermore, limiting outstanding debt levels helps in promoting fiscal discipline and encourages the organization to prioritize its projects and funding needs. It contributes to a balanced approach to financing while ensuring that present and future debt obligations are manageable in relation to revenue forecasts and overall financial strategy.

While options related to interest rate increases, market volatility, and debt issuance frequency can influence the context of debt management, they do not directly align with the main objective of a debt policy, which is to maintain control over the total amount of outstanding debt.