Medium-Term Debt Management Strategy (MTDS)

July 11, 2019

  • The Medium-Term Debt Management Strategy (MTDS) framework and its supporting analytical tool is designed to assist country authorities in developing a sound debt management strategy (DMS)
  • The steps comprising in the MTDS framework can be used to identify the factors that need to be considered in developing a DMS, and to link the DMS to the wider policy framework
  • The MTDS analytical tool helps to analyze the cost and risk tradeoffs inherent in a government’s financing choices


The aim of debt management is to raise the required amount of funding at the lowest possible cost over the medium to long run, consistent with a prudent degree of risk.

A debt management strategy (DMS) sets out 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. A DMS guides debt management decisions and on-going operations. Such a strategy is critical to helping a government manage the risk exposures arising from its debt portfolio, particularly variations in debt servicing cost and roll-over risk. Moreover, the implementation of a sound DMS can help reduce macro-financial risks, support fiscal policy, complement prudent monetary policy implementation, and contribute to financial sector development by supporting the development of a functioning government securities market. Therefore, the design and implementation of a DMS requires strong coordination with other public sector policies.

Together, the World Bank and the IMF have developed a framework to guide country authorities in the process of a developing a DMS, namely, the Medium-Term Debt Management Strategy (MTDS) framework. The framework seeks to help countries in the development of a strategy that incorporates key linkages with macroeconomic policy; is consistent with maintaining debt sustainability; and facilitates domestic debt market development.

The MTDS framework consists of an eight-step methodology, supported by an analytical tool (AT), 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.


A large volume of technical assistance has been delivered and resources deployed within the context of the MTDS framework. There have been over 100 WB and IMF technical assistance missions on MTDS since 2008, supported by the DMF. Also with DMF support, the bilateral technical assistance missions have been complemented by regional, international, and on-line training on the MTDS. In many instances, the delivery has been with other development partners, broadening the pool of trainers.

An updated assessment of WB and IMF efforts to help countries develop capacity in formulating and implementing medium-term debt management strategies has been provided in a recent report by the World Bank Group and the IMF – The Medium-Term Debt Management Strategy (MTDS): An Assessment of Recent Capacity Building - looks at the 10 years of MTDS and how it has been adapted to function in a more complex international environment.

MTDS Resources

The MTDS toolkit includes: (i) a Guidance Note which describes the process of designing and implementing a debt management strategy; (ii) an Analytical Tool which can be used for the cost-risk analysis; (iii) a user guide, and (IV) a data preparation manual which complements the Analytical Tool.

Guidance Note:





Countries with Current Medium-Term Debt Management Strategies

Country Year published Period Covered
Armenia 2018 2019-2021
Azerbaijan 2018 2018-2025
Benin 2017 2017-2021
Bosnia and Herzegovina 2018 2018-2020
Cambodia 2015 2015-2018
Côte d'Ivoire 2016 2017-2022
Ethiopia 2019 2016-2020
Gambia, The 2017 2017-2020
Ghana 2017 2017-2020
Grenada 2017 2018-2020
Honduras 2018 2018-2022
India 2015 2015-2018
Kenya 2018 2018-2021
Kosovo 2018 2019-2021
Kyrgyz Republic 2018 2018-2020
Lesotho 2018 2018-2022
Madagascar 2018 2019-2021
Maldives 2017 2019-2021
Moldova 2018 2019-2021
Mongolia 2015 2016-2018
Mozambique 2015 2015-2018
Nicaragua 2016 2016-2019
Nigeria 2016 2016-2019
Pakistan 2015 2016-2019
Papua New Guinea 2018 2019-2022
Rwanda 2018 2018-2021
Samoa 2016 2016-2020
Senegal 2017 2018-2020
Solomon Islands 2016 2016-2020
Sri Lanka 2017 2017-2020
St. Vincent and the Grenadines 2018 2018-2020
Tajikistan 2014 2015-2017
Tanzania 2017 2018-2021
Uganda 2016 2018-2021
Vanuatu 2015 2015-2017
Zambia 2017 2017-2019