• Effective public debt management can reduce financial vulnerabilities, contribute to macroeconomic stability, preserve debt sustainability, and protect a government's reputation among investors. Debt managers around the world must find a balance between borrowing to finance the government needs while keeping costs and risks low. Volatile interest rates and exchange rates can create uncertainty around borrowing decisions.

    The World Bank Group helps client countries strengthen their ability to manage debt effectively through assessments, expert advice and training. We provide a range of diagnostic assessments designed to bolster governance and institutional frameworks. World Bank Group experts also provide assistance in formulating country-specific strategies for borrowing and repaying debt.

  • The World Bank Group uses several tools resources to help countries improve their debt management capacity.

    Debt Management Facility
    This joint World Bank-IMF trust fund specifically focuses on strengthening debt management capacity in low-income countries eligible for financing through the International Development Association (IDA)

    Debt Management Performance Assessment (DeMPA)

    The DeMPA is a tool for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions. It was initially developed by the WB in cooperation with its international partners during 2007-2008 and was revised in 2015.

    Medium-Term Debt Management Strategy (MTDS)

    The MTDS helps governments answer key questions about their approach to debt over the next 3-5 years, such as: At what cost should we borrow? How much risk should we take in borrowing? How should we structure our repayment to meet budget and development needs?

    Debt Management Reform Plans

    A Debt Management Reform Plan lays out a detailed, country-owned, capacity-building plan for policy and institutional reform, based on a comprehensive analysis of public debt management operations.

  • Since 2008, the Debt Management Facility has supported debt-management capacity building and reforms in over 80 countries. The DMF provides technical assistance, tailored advisory support, training, analytical tools, and peer-to-peer learning that strengthen countries’ ability to manage debt. Since its inception, the DMF has implemented more than 290 technical assistance missions in more than 75 countries and 15 subnational entities. 

    Significant strides have been made in debt management since 2008 in DMF-eligible countries. The DMF has achieved the following results:

    • Today, more countries prepare and publish debt management strategies, the quality of debt records for government debt has improved, and many countries have improved the organization of their debt-management institutions.

    • The Debt Management Performance Assessment results for 37 countries where at least two assessments were undertaken during 2008-17 suggest strong improvements in the quality of legal frameworks for sovereign debt management, coordination with monetary policy, managerial structure, and publication of debt reports.

    • Since 2010, 49 individuals from 45 countries have graduated from the Debt Management Practitioners Program. This includes Stella Nteziryayo, who has served as the head of the Public Debt Office in Rwanda.

    • The DMF has delivered more than 105 DeMPAs, 95 MTDS, and 65 Reform Plans.

    For more on the DMF's results on debt management, read the results brief.



MULTIMEDIA

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