See IMF and WB (2014), “Revised Guidelines for Public Debt Management”.
See IMF and WB (2009), “Developing a Medium-Term Debt Management Strategy (MTDS)—Guidance Note for Country Authorities”.
See IMF and WB (2009), “Managing Public Debt: Formulating Strategies and Strengthening Institutional Capacity” and the update SM/14/74.
See IMF Policy Paper (2014), “Proposed New Grouping in World Economic Outlook Country Classifications: Low-Income Developing Countries” for a full description and list of LIDCs and EMDCs.
See also IMF, Fiscal Monitor, various issues, and IMF and WB, Public Debt Vulnerabilities in Low-Income Countries: The Evolving Landscape, December 2015.
Some oil exporting countries entered or returned to the Eurobond market in response to the fall in oil revenues.
IMF “Capital Flows—Review of Experience with the Institutional View,” December 2016, provides an up-to-date discussion of related issues.
Some countries introduced local currency instruments such as retail bonds and sukuk to attract new investors.
See IMF-WB (2007) “Strengthening Debt Management Practices––Lessons from Country Experiences and Issues Going Forward” http://www.imf.org/external/pp/longres.aspx?id=4189; PIN 07/60; SM/09/64; PIN 09/45; SM/13/56.
The rationale for the focus on LIDCs was based on the new borrowing space created by the significant debt relief because of the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiatives, and the need to use this borrowing space prudently.
The MTDS and DSA tools are complements: the DSA is a monitoring tool aimed at highlighting debt vulnerabilities for a given debt structure and strategy. The MTDS is a policy tool to then help the authorities adjust strategy to address the debt profile-related vulnerabilities highlighted in the DSA (as well as meet broader cost-risk objectives).
Available at http://www.imf.org/external/pp/longres.aspx?id=4926.
See Annex 5 of the 2015 WB (2015) Non-Concessional Borrowing Policies: http://ida.worldbank.org/sites/default/files/pdfs/ncbpoct2015.pdf
Development of Local currency Bond Markets: Overview of Recent Developments and Key Themes. Staff Note for the G20 IFAWG. IMF and WB Group, 2016. Available at http://www.imf.org/external/np/g20/pdf/2016/121416.pdf
Local Currency Bond Markets: A Diagnostic Framework, 2013. Available at https://www.imf.org/external/np/pp/eng/2013/070913.pdf
Addis Ababa Action Agenda of the Third International Conference on Financing for Development, United Nations 2015, available at http://www.un.org/esa/ffd/wp-content/uploads/2015/08/AAAA_Outcome.pdf
Independent Evaluation Group (IEG) of the World Bank Group Engagement in Small States (2016) discusses the WB-IMF support for better debt management in the Organization of Eastern Caribbean States and Pacific Island Countries in more detail.
Participation in the online course on debt sustainability and debt management strategy in English (DSAx) tends to be spread across all regions. Participation in the French course (DSAx-F) tends to come from the African and Middle East and Central Asia regions. Typically, the courses used to run several times a year, for government officials across the globe and as Massive Open Online Courses (MOOCs). As of April 2017, and in response to the preferences of government officials, both English and French versions are open on a rolling basis as MOOCs. The WB offers twice yearly a facilitated on-line DeMPA course, which also covers the fundamental concepts of MTDS and DSF.
The implementing partners comprise the Center of Latin American Monetary Studies; the Commonwealth Secretariat; the United Nations Conference on Trade and Development; Debt Relief International; Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI); and West African Institute for Financial and Economic Management; and the Agence UMOA-Titres.
The IMF and Bank have developed the Government Securities Market Development toolkit to assess the state of functioning of the domestic market.
See Elva Bova ; Frederik G Toscani; H. Elif Ture; Marta Ruiz-Arranz, “The Fiscal Costs of Contingent Liabilities: A New Dataset,” IMF Working Paper WP/16/14.
It should be noted that analyzing risks related to contingent liabilities often goes beyond the scope of the explicit responsibilities of the debt manager. Instead, tools developed by the IMF and WB’s such as public-private partnership (PPP) Fiscal Risk Assessment Model can assist countries in assessing potential fiscal costs and risks arising from PPPs, while the Debt, Investment and Growth model, is helping countries to analyze the debt sustainability of large scale public investment programs.
For example, IMF technical assistance to Jamaica and Barbados in 2016, where financing details from the MTDS were incorporated into the MAC DSA. Similarly, the WB support in Bosnia and Herzegovina linked financing and shock scenarios in both the DSA and MTDS exercises.
The Boards are expected to discuss informally the revised LIC-DSF before this report is considered.
Not all were recipients of technical assistance.
IDA offers choices on currency and customize redemption dates; IBRD provides free currency choice (if WB can swap back to USD), fixed versus floating, and freedom to construct tailor made redemption profiles.
MTDS missions typically devote much time to compiling consistent and up-to-date data (see above).
A description of the DeMPA framework is provided in Annex III. Results from DeMPAs and especially those on DMS should be interpreted with caution: fulfilling the quality requirements hinges on a range of criteria, such as including measures to support domestic debt market development in the strategy, or publishing the strategy on an official website and/or in print media. A country might, therefore, be capable of preparing a DMS but still fall short of fulfilling the minimum requirements if other criteria are not met. Incremental measures and reforms undertaken by countries may not necessarily be reflected in score upgrades.
The CPIA aims to capture the quality of a country’s policies and institutional arrangements on an annual basis. Criteria 3b addresses specifically debt related policies, and the extent to which debt management is conducted in a way that is conducive to minimizing budgetary risks and ensuring long term debt sustainability.
CPIA scores are not available for high-income countries.
As a condition of borrowing from IBRD and IDA, countries are obligated to submit detailed information on the terms and conditions of long-term external debt borrowing and related stocks and flows to the Debtor Reporting System (DRS). Most countries that received MTDS TA borrow from the WB and thus report to DRS. MTDS-eligible countries with no loan obligations to IBRD or IDA do not report to the DRS.
The study is based on a weighted index of CPIA scores, DRS scores, the ability to develop and publish a debt management strategy, and the risk of debt distress.
The MTDS-enhancing measures would be covered under IMF Article IV surveillance if they significantly influence a member’s present or prospective balance of payments or domestic stability, consistent with IMF surveillance policy.
For example, training through workshops on the revised DSF is expected to be increased significantly in the coming years.