Chapter 3. Cash and Debt Management: Interaction, Coordination, and Integration

Abstract

This chapter identifies the main cash and debt management (CDM) functions of a ministry of finance (MoF), explains the importance of interaction and coordination between them, and sets out how this can be best achieved under various institutional structures. Although the chapter discusses the CDM items in combination, it approaches the interactions primarily from the perspective of cash management and the wider treasury. It does not discuss debt management policies in detail, which would require a more extensive literature (Bangura, Kitabire, and Powell, 2000; Shah, 2007).1 The chapter also offers a number of country examples, describes how cash and debt units are organized in Latin America, and discusses the usefulness that integration has on both functions in one unit.

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