The DMF program was launched in 2008 by the World Bank and has been administered jointly with the International Monetary Fund since 2014. Building upon the success of the first and second phases of DMF (DMF I and II), as well as the unwavering commitment of donors, the third phase (DMF III) was launched in Fiscal Year 2020. The third phase of the DMF enjoys the support of twelve donors, including the African Development Bank (AfDB), Austria, Canada, the European Union (EU), France, Germany, Japan, the Netherlands, Norway, Switzerland, the United Kingdom, and the United States.
The goal of the DMF is to reduce debt-related vulnerabilities by strengthening debt management capacity, processes and institutions and improving debt transparency. The DMF does this through capacity-building activities, including the design and application of tailored advisory services and technical assistance, applied analytical work, training, and peer-to-peer learning. The DMF facilitates collaboration among providers of technical assistance on debt management and promotes dialogue on debt issues among stakeholders. It also plays a critical role in developing and disseminating information about sound debt management practices, tools, and guidance.
For over a decade, the Debt Management Facility (DMF) has been actively engaged in capacity building and driving reforms in debt management, earning international recognition as a node of global excellence in debt management. With a well-established track record of strong performance in enhancing expertise in debt management since 2009, the DMF has facilitated more than 463 Technical Assistance (TA) initiatives across 78 countries and 20 subnational entities by December 2022.
The DMF is uniquely positioned to adapt to emerging debt management challenges and is pivotal in the Bank-Fund Multipronged Approach for Addressing Emerging Debt Vulnerabilities. The success of the DMF's ambitious agenda relies on two key factors: first, the ability to secure adequate financial resources, and second, the flexibility to respond swiftly to the urgent needs of our member countries.
The DMF plays a crucial role in enhancing coordination among technical assistance providers in debt management. This coordination facilitates the pooling of knowledge, efficient utilization of limited resources, and the provision of the highest quality advice to countries seeking assistance. The DMF's implementation partners, including i) The Debt Management Program of the United Nations Conference on Trade and Development (UNCTAD-DMFAS) ii) The Debt Management Section of the Commonwealth Secretariat (COMSEC), iii) Debt Relief International (DRI) iv) The Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) v) The West African Institute for Financial and Economic Management (WAIFEM) are actively involved in DMF missions and training activities. Additionally, they contribute to the coordination of training events and, in certain cases, provide ongoing support for reform efforts in specific countries.
The DMF has substantially impacted the debt management practices of DMF-eligible countries, resulting in notable improvements in debt management strategies, the strengthening of debt management institutions, and increased debt transparency. Currently, more countries are formulating and disclosing their debt management strategies. There has been an enhancement in the quality of government debt records, and numerous countries have strengthened the structure of their debt management institutions and legal frameworks while improving coordination with fiscal policies by aligning them with medium-term fiscal frameworks.
Despite challenges related to the COVID-19 pandemic, the DMF has consistently delivered strong and sustained results driven by a high demand for technical assistance. In FY23, there was substantial demand for TA services, including debt diagnostics (Debt Management Performance Assessments, Domestic Debt Market Development) and debt management strategy. The DMF has also continued delivering a webinar series, broadening its reach and impact. In FY23, the DMF Stakeholders' Forum, with 120 participants from 31 countries, exemplified the expansion of peer-to-peer activities. Online training programs have seen a surge in demand, but technical assistance has moved back to predominantly in-person delivery. Hybrid activities have been maintained for selected TA and training deliveries.
During the past fiscal year, we also witnessed the highest demand for Medium-Term Debt Strategy (MTDS) and Annual Borrowing Plan (ABP) support since the inception of DMF III. Demand for the development of debt markets is steadily increasing, along with the need for debt reporting, both funded within and outside the DMF Program.
Additionally, intermediate results of DMF III indicate ongoing progress in debt transparency and the publication of government debt statistics. By the end of FY23, 44 DMF countries published Debt Management Strategies (DMS), 11 countries published ABPs, and 43 DMF countries published Debt Statistical Bulletins.