Helping Developing Countries Address Public Debt Management Challenges - An IMF-World Bank Capacity Building Partnership

Policy Papers ◽  
2013 ◽  
Vol 2013 (39) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Capacity Building ◽  
World Bank ◽  
Public Debt ◽  
Debt Management ◽  
Medium Term ◽  
Public Debt Management ◽  
Continued Use ◽  
Building Program ◽  
Capacity Building Program

In 2009, the Boards of the IMF and World Bank jointly endorsed a capacity building program to help developing countries strengthen their public debt management frameworks. A key aspect of the program was to help developing countries implement the framework developed by staffs to formulate an effective medium-term debt management strategy (MTDS). The Boards also supported the continued use of the complementary framework—the Debt Management Performance Assessment (DeMPA)—developed in 2007, to assess the effectiveness of the broader institutional arrangements for public debt management. This paper provides an update on the implementation of the program since its endorsement in 2009.

Strengthening Debt Management Practices - Lessons from Country Experiences and Issues Going Forward

Policy Papers ◽  
2007 ◽  
Vol 2007 (9) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
World Bank ◽  
Public Debt ◽  
Management Practices ◽  
Technical Assistance ◽  
Debt Management ◽  
Pilot Program ◽  
The World Bank ◽  
The World ◽  
Public Debt Management

This paper reviews Bank-Fund staff experience with strengthening public debt management (PDM) frameworks and capacity in developing countries. In 2001, the IMF and the World Bank developed sound practice guidelines in this area, followed by a pilot program to assist 12 countries develop and implement reforms. In addition, an assessment of PDM has been incorporated into surveillance work, where relevant, and included in other Bank and Fund advisory and technical assistance work. Based on these, the paper draws key lessons, identifies the continuing challenges facing debt managers, and proposes further capacity building and advisory work in PDM. The 12 countries in the pilot program were Bulgaria, Colombia, Costa Rica, Croatia, Indonesia, Kenya, Lebanon, Nicaragua, Pakistan, Sri Lanka, Tunisia, and Zambia.

Managing Public Debt-Formulating Strategies and Strengthening Institutional Capacity

Policy Papers ◽  
2009 ◽  
Vol 09 ◽  
Author(s):  
Keyword(s):  
World Bank ◽  
Public Debt ◽  
Management Strategy ◽  
Analytical Tool ◽  
Debt Management ◽  
Medium Term ◽  
Management Performance ◽  
Work Program ◽  
Guidance Note ◽  
The Imf

In May 2007, the IMF and World Bank Boards discussed the paper "Strengthening Debt Management Practices: Lessons from Country Experiences and Issues Going Forward". In those discussions, the Boards of both institutions endorsed a public debt management (PDM) work program that was particularly focused on strengthening frameworks and capacity in low-income countries (LICs). This comprised three main elements: (i) develop a toolkit to help LICs formulate an effective Medium-Term Debt Management Strategy (MTDS) and apply it in 4–6 countries a year; (ii) undertake debt management performance assessments; and (iii) continue the provision of debt management and domestic market development technical assistance (TA) and advisory services to middle-income countries (MICs). This paper is a response to the Boards' request for an update on the development and implementation of that work program. Developing a Medium-Term Debt Management Strategy (MTDS)— Guidance Note for Country Authorities Debt Management Performance Assessment Tool (DEMPA) Developing a Medium Term Debt Management Strategy: User Guide and Analytical Tool — In March 2009, the Executive Boards of the World Bank and the IMF endorsed the Medium Term Debt Management Strategy (MTDS) Framework developed by IMF and World Bank staff to help countries elaborate effective debt management strategies. The MTDS framework and toolkit comprises two elements: An operational guidance note (GN) and a spreadsheet-based analytical tool (AT). The GN provides practical guidance on the process of developing an effective MTDS, describing each step involved, while the AT provides quantitative analysis to guide the MTDS decision-making process.

Revised Guidelines for Public Debt Management

Policy Papers ◽  
2014 ◽  
Vol 2014 (2) ◽  
Author(s):  
Keyword(s):  
World Bank ◽  
Public Debt ◽  
Financial Stability ◽  
Debt Management ◽  
Regulatory Changes ◽  
International Financial Architecture ◽  
Wide Range ◽  
Institutional Structures ◽  
Public Debt Management ◽  
Recent Financial Crisis

The Guidelines for Public Debt Management (Guidelines) have been developed as part of a broader work program undertaken by the IMF and the World Bank to strengthen the international financial architecture, promote policies and practices that contribute to financial stability and transparency, and reduce countries’ external vulnerabilities. In developing the Guidelines, IMF and World Bank staffs worked in close collaboration with debt management entities from a broad group of IMF-World Bank member countries and international institutions in a comprehensive outreach process. The debt managers’ insights, which this process brought to the Guidelines, have enabled the enunciation of broadly applicable principles, as well as institutional and operational foundations, that have relevance for members with a wide range of institutional structures and at different stages of development. The revision of the Guidelines was requested by the G-20 Finance Ministers and Central Bank Governors, at their meeting in Moscow, on February 15–16, 2013. Since their adoption in 2001, and amendments in 2003, financial sector regulatory changes and macroeconomic policy developments, especially in response to the recent financial crisis, have significantly affected the general financial landscape. As a consequence, many countries have experienced significant shifts in their debt portfolios, in terms of both size and composition. Accordingly, the Guidelines were reviewed and revised to reflect the evolving public debt management challenges over the last decade

scholarly journals Models of Public Debt Management in the World and Lessons for Vietnam

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Pham Xuan Truong
Keyword(s):  
World Bank ◽  
Public Debt ◽  
Management Strategies ◽  
Policy Research ◽  
Government Debt ◽  
Central Banking ◽  
Debt Management ◽  
Working Paper ◽  
The World ◽  
Public Debt Management

Vietnam embarked on fundamentally building a public debt management system since 2009 as the Law of Public Debt Management was designed and promulgated. From then Vietnam has been following the typical model of public debt management used by developing countries, the market – based model which encompasses gradual building and completion of domestic market for government bond. However, because of several limitations in the national system of public debt management, the current model needs to be improved in alignment with the development level of Vietnam’s economy. Especially, economic shocks such as the 2009 financial crisis or Covid 19 which has increased dramatically the scope of public debt also urge a more technical and effective model. The paper focuses on analyzing the practical models of public debt management in the world and subsequently the current situation of Vietnam’s model. On that basis, the author figures out the limitations of the model and proposes a number of solutions to upgrade the model in accordance with the international practice regarding model of public debt management suitable with development level of economy.  Keywords Public debt, sustainable public debt, public debt management, risk management, model of public debt management. References [1] D.Q. Bao, The science of Management and Organization Statistical Publishing House, Hanoi, 1999 (in Vietnamese),[2] IMF, Defining the Government’s debt and deficit, Working paper, WP/15/238, 2015.[3] IMF, Revised guidelines for public debt management, IMF Policy paper, 2014.[4] WB, Government debt management: Designing debt management strategies, Debt management learning & training note, 2017. [5] E. Currie, J. Dethier and E. Togo, Institutional arrangements for Public Debt Management, World Bank Policy Research Working Paper 3021, 2003.[6] E.C. Pascal, The debt office and the effective debt management functions: an institutional and operational framework, Public debt and Public Finance Working Paper, 2006.[7] H. Bohn, Tax Smoothing with Financial Instruments, American Economic Review, 80/5 (1990) pp 1217–1230.[8] J. Tobin, An Essay on the Principles of Debt Management, Fiscal and Debt Management Policies, 2 (1963), Reprinted in J. Tobin Essays in Economics, vol.1, Amsterdam: North Holland, 1971.[9] E. Togo, Coordinating Public Debt Management with Fiscal and Monetary Policies: An Analytical Framework, World Bank Policy Research Working Paper, No. 4369, 2007.[10] L. Hoogduin, B. Ozturk & P.Wierts, Public debt managers’ behavior: interactions with macro policies, DNB Working paper No.273, 2010.[11] WB, Debt management performance assessment (DeMPA) methodology, 2015.[12] R. Cabral, How strategically is public debt being managed around the globe? A survey on public debt management strategies, WB Financial advisory and Banking department report, 2015.[13] C. Aslan, A. Ajazaj & S.A. Wahidh, Study on Public debt management system and results of a survey on solutions used by debt management office, WB Financial advisory and Banking department report, 2018.[14] IMF, G-20 note: Improving public debt recording, monitoring, and reporting capacity in low and lower middle-income countries: proposed reforms, 2018.[15] A.A. Badurina, S. Svaljek, Public debt management before, during and after the crisis, Finance theory and practice, 36(1) (2012) 73 – 100.[16] I. Storkey, Sound practice, in: M. Williams and P. Brione (Eds.), Government Debt Management: New Trends and Challenge, Central Banking Publications Ltd, London, 2006, pp 300 – 325.[17] G. Wheeler, Sound Practice in Government Debt Management, The World Bank Publication, Washington D.C, 2004. doi. 10.1596/0-8213-5073-0.[18] National Treasury Management Agency, Ireland Information Memorandum 2010, National Treasury Management Agency, Dublin, 2010.[19] M. Williams, The growing responsibilities of debt management offices, in: M. Williams, P. Brione (Eds.), Government Debt Management: New Trends and Challenge, Central Banking Publications Ltd, London, 2006, pp 258 – 273.[20] H.N. Au, Public debt management in Vietnam in the international integration period (in Vietnamese), https://hcma.vn/Uploads/2018/8/8/Hoang%20Ngoc%20Au%20-%20Luan%20an%20-%20CN%20Quan%20ly%20kinh%20te.pdf, 2018 (accessed 20 August 2020).[21] T. Phung, Firmly maintaining the country’s credit rate (in Vietnamese), http://tapchitaichinh.vn/su-kien-noi-bat/tiep-tuc-giu-vung-muc-xep-hang-tin-nhiem-quoc-gia-325601.html, 2020 (accessed 21 August 2020).[22] N.T. Binh, The factors affecting the efficiency of public debt management in Vietnam (in Vietnamese), http://www.tapchicongthuong.vn/bai-viet/cac-yeu-to-anh-huong-toi-hieu-qua-quan-ly-no-cong-o-viet-nam-73005.htm, 2020 (accessed 22 August 2020).[23] T. Anh, Six solutions for public management in the new context (in Vietnamese), http://tapchitaichinh.vn/su-kien-noi-bat/6-giai-phap-quan-ly-no-cong-trong-boi-canh-moi-308263.html, 2019 (accessed 23 August 2020).  

PUBLIC DEBT MANAGEMENT AND FOREIGN CURRENCY DENOMINATED BONDS

2007 ◽  
Vol 10 (05) ◽  
pp. 763-770
Author(s):  
SILVIA CECCACCI ◽  
ALESSANDRO MARCHESIANI ◽  
LORENZO PECCHI
Keyword(s):  
Stochastic Model ◽  
Public Debt ◽  
Foreign Currency ◽  
Debt Management ◽  
Bond Type ◽  
Total Debt ◽  
Public Debt Management ◽  
Percentage Share ◽  
Increasing Function

Foreign-currency denominated securities are introduced in a stochastic model à la Missale [13]. It is shown that the percentage share of this bond type, as compared to total debt, is an increasing function of the covariance between the output and the rate of depreciation, but it may or may not be a decreasing function of the volatility of the rate of depreciation.

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