BRIEF

Debt Management Performance Assessment (DeMPA)

July 11, 2019

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The Debt Management Performance Assessment (DeMPA) is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions. It was developed by the World Bank in cooperation with its international partners during 2007-2008. In 2012, the World Bank developed the methodology for subnational DeMPAs.

National DeMPA

The Debt Management Performance Assessment (DeMPA) offers a comprehensive and thorough diagnostic of government debt management practices and institutions in a country. The DeMPA highlights strengths and weaknesses in government DeM practices in each country and facilitate the design of reform plans to strengthen debt management capacity, processes and institutions. DeMPAS provide a way to monitor progress toward international sound practices over time.

DeMPA Methodology:  English | French | Spanish | Russian (PDF)

Scope and Coverage of the Framework

The scope of the DeMPA is central government debt management activities and closely related functions such as issuance of loan guarantees, on-lending, and cash flow forecasting and cash balance management. The DeMPA uses 14 debt management performance indicators, listed below:

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Scoring Methodology

The DeMPA assigns a score of A, B, C or D, depending on the criteria listed, to each of the Debt Management Performance Indicators:

  • A: reflects sound practice for that particular dimension of the indicator.
  • B: lies between the minimum requirements and sound practice for that aspect.
  • C: indicates that a minimum requirement for that dimension has been met. A minimum requirement is considered the necessary condition for effective performance under the dimension being measured.
  • D: indicates that the minimum requirement has not been achieved, signals a deficiency in performance, normally requiring priority corrective action.


Subnational debt management performance assessment (DEMPA)

The World Bank also uses a version of the DeMPA to analyze the strengths and weaknesses of debt management practices at the local level - subnational governments. The tools used for national and subnational assessments are similar, but the subnational DeMPA is tailored to address the needs of subnational entities, which differ from central banks. 

Scope and Coverage of the Framework

The subnational DeMPA methodology is to be applied to individual subnational government entities that have the capacity to incur debt or that plan to do so in the short term and have debt outstanding. Therefore, even in a country where the central government on-lends to subnational entities, and subnational governments cannot borrow directly from financial markets, subnational DeMPA can still be applied to the subnational governments that have debt outstanding to the central government.

The Subnational DeMPA tool comprises of five core areas, 13 DPIs and 31 dimensions, which are applied to evaluate the capacity of the subnational borrower to manage the debt portfolio.

Methdological Revisions

The subnational DeMPA methodology was developed by the World Bank in 2012 and revised in 2016. As of 2017 the tool has been applied in 15 subnational governments, in 7 countries.

Subnational DeMPA methodology: English (PDF)  

 



Upcoming DeMPA Regional Trainings:

DMF Training Calendar, July 2017-June 2018 (FY18) (PDF) 

For any additional information, please contact Debbie Sturgess, dsturgess@worldbank.org