Debt Management Performance Assessment

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  • Publication
    Debt Management Performance Assessment: Kingdom of Lesotho
    (World Bank, Washington, DC, 2018-07) World Bank
    At the request of the Minister of Finance of Lesotho, a joint World Bank -Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) mission visited Maseru, between July 2 to 6, 2018, to undertake a Debt Management Performance Assessment (DeMPA).The objective of the mission was to evaluate current performance against the DeMPA methodology, and to assess progress since 2012, when the first DeMPA was performed.The results of the evaluation, spanning the full range of debt management (DeM) functions, show limited progress. Compared to the previous DeMPA, the current assessment revealed only one upgrade related to the registry and management system for domestic debt of the CBL. Yet, additional actions to improve debt management in Lesotho are currently under discussion (i.e., approval of a new policy framework and public debt law), or have already started such as the publication of a debt statistical bulletin, undertaking of a Medium-Term Debt Strategy (MTDS) analytical exercise as the foundation for a Debt Management Strategy, and introduction of a Cash Management Unit.The assessment also revealed several downgrades associated to weaknesses in debt reporting to parliament, lack of regular information sharing between MoF - CBL and with market participants, as well as lack of secure storage and backup for the debt recording and management system of the MoF. Additional areas of improvement relate to, among others: i) fragmented legal framework; ii) lack of a loan guarantees’ framework; iii) preparation and approval of a formal Debt Management Strategy; iv) weak quality controls for data publication; v) quality of cash flow forecasts; vi) lack of policies and procedures for DeM operations; and, vii) completeness and timeliness of debt records.
  • Publication
    Debt Management Performance Assessment: Zimbabwe
    (World Bank, Washington, DC, 2015-12) World Bank
    The mission met with government officials from the Ministry of Finance and Economic Development (MoFED), comprising the departments responsible for debt management (DeM), i.e. the Public Debt Management Office (PDMO), executing the middle and back office functions, and the Departments of International Cooperation, and Financial and Capital Markets, which function as the front offices for foreign and domestic debt. The team also met with other relevant government agencies, and a private bank to complete the assessment. A meeting was arranged with the development partners in the country to inform them of the government’s request for a DeMPA and the key dimensions to be assessed during the exercise; and to gain insights from their experiences. The meeting schedule is given in annex one. This mission falls mainly within the scope of the assistance provided by the World Bank and its partners to improve debt management capacity in developing countries. To this end, the DeMPA tool is based on a methodological approach that facilitates evaluation of performance using different indicators that bring together all debt management functions. These indicators cover the following areas of activity: (i) governance and strategy development; (ii) coordination with macroeconomic policies; (iii) borrowing and related financing activities; (iv) cash flow forecasting and cash balance management; and (v) debt recording and operational risk management. The DeMPA assesses the strengths and weaknesses of each country’s debt management without making recommendations or assumptions as to the potential effects of reforms under way.
  • Publication
    Debt Management Performance Assessment : Mozambique
    (Washington, DC, 2008-03) World Bank
    The Debt Management Performance Assessment (DeMPA) is a methodology for assessing government debt management (DeM) performance through a comprehensive set of indicators spanning the full range of DeM functions. The assessment reveals that Mozambique has points of strength in most areas evaluated by the DeMPA, but that it meets the minimum requirements only in the fields of the legal framework and managerial structure. Mozambique does not meet the minimum requirements with respect to the other indicators, although in many cases work is underway that would lead to meeting the requirements (e.g., debt strategy, debt reporting) or only small improvements would be required in order to meet those requirements (e.g., the annual report, coordination with fiscal policy). The concluding section of this paper outlines areas in which the minimum requirement could be met over the short run with minimal adjustments, and areas where progress would require stronger efforts. Mozambique benefited from debt relief under the Heavily Indebted Poor Country (HIPC) initiative in 2001 and the Multilateral Debt Relief Initiative (MDRI) in 2006. The government has remained committed to seeking new financing with at least 35 percent concessionality, which has been made possible by the strong involvement of the international donor community. Due in large part to Mozambique's success in implementing public financial management reforms, a substantial proportion of external assistance takes the form of direct budget support. The scope of the DeMPA includes central government debt management activities and closely related functions, such as the issuance of loan guarantees, on-lending, cash-flow forecasting, and cash balance management. Thus, the DeMPA does not assess the ability to manage the wider public debt, including implicit contingent liabilities, as well as the debt of state-owned enterprises if these are not guaranteed by the central government.