Debt & Fiscal Risks Toolkit

The Medium-Term Debt Management Strategy (MTDS) is a framework developed by the World Bank and IMF to guide the debt management decisions and operations of government authorities. The MTDS links borrowing with macroeconomic policy; helps countries maintain sustainable levels of debt; and facilitates domestic debt market development.

Debt managers are responsible for raising the funding a government needs at the lowest possible cost over the medium- to long-run, consistent with a prudent degree of risk. The MTDS outlines how the government intends to borrow and manage its debt to achieve a portfolio that reflect its cost and risk preferences, while meeting financing needs.

Implementing an MTDS helps governments manage risk exposures arising from its debt portfolio, reduce macro-financial risks, reinforces fiscal policy and supports the development of a functioning government securities market.

Countries with Current Medium-Term Debt Management Strategies*

*The documents in this list are published and maintained by governments. This list will be updated annually. (Last update occurred in June 2022.) The publication of a Medium-Term Debt Management Strategy is assessed as part of the Debt Reporting Heat Map.

Methodology

The MTDS framework consists of an eight-step methodology, supported by an analytical tool, which enables governments to assess the potential cost and risk trade-offs they may face under different debt management strategies. The MTDS framework covers:

• the objectives and scope of debt management;
• the characteristics of the existing debt portfolio and the identification of risk priorities;
• the sources of potential domestic and external financing; the macroeconomic framework and structural factors;
• baseline pricing assumptions and shock scenarios; and the comparison of alternative funding strategies based on estimates of cost and risk.

Delivery

Through the Debt Management Facility, The World Bank and IMF have provided over 100 bilateral technical assistance missions on the MTDS since 2008. This technical assistance has been complemented by regional, international, and online training.  

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Publication: The Medium-Term Debt Management Strategy (MTDS): An Assessment of Recent Capacity Building

This publication looks at the 10 years of MTDS and how it has been adapted to function in a more complex international environment.