Publication: Debt Management Performance Assessment : Albania
Loading...
Published
2011-06
ISSN
Date
2013-11-06
Author(s)
Editor(s)
Abstract
From November 8 to 17, 2010, a World Bank team undertook a Debt Management Performance Assessment (DeMPA) mission to Tirana, Albania. The mission's objective was to prepare a comprehensive assessment of government debt management functions by applying the DeMPA methodology. This report presents the results of the assessment, based on the December 2009 version of the DeMPA tool. The assessment reveals that Albania meets the requirements for the A score in eleven dimensions assessed the B score in five dimensions, the C score in twelve dimensions, and the D score in five dimensions. Of more than 50 countries assessed by the World Bank under the DeMPA program so far, Albania stands out as one of the few which has sound debt management practices in the largest number of areas as defined by the DeMPA methodology. Albanian economy is highly dependent on remittances. Sectors that rely on remittances construction, wholesale and retail, and other services together account for over 60 percent of the country's Gross Domestic Product (GDP) and has been the backbone of the country's strong growth. Large capital inflows (remittances, official assistance, and some foreign direct investment) have resulted in a steady appreciation of the country's currency. The DeMPA focuses on 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 portfolio, including implicit contingent liabilities.
Link to Data Set
Citation
“World Bank. 2011. Debt Management Performance Assessment : Albania. © World Bank. http://hdl.handle.net/10986/16230 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Debt Management Performance Assessment : Armenia(World Bank, Washington, DC, 2013-11)The World Bank mission team comprised of Memes/ Messrs. Lilia Razlog (mission lead, PRMED, WB), Antonio Velandia (FABDM) and Ying Li (Consultant, WB), joined by Juan Carlos Vilanova, Debt Relief International (DRI), who conducted a Government Debt Management performance Assessment (DeMPA) evaluation for Republic of Armenia. At the request of the authorities, the mission took place from October 29 to November 8, 2013. The team worked closely with the main counterparts at the Ministry of Finance (MoF), NASDAQ-OMX, Chamber of Control (CoC), as well as the officials from the other government agencies and the Central Bank of Armenia (CBA). The mission team benefited from excellent cooperation of the Public Debt Management Department (PDMD) of the Ministry of Finance, other line departments of the MoF, CBA, Ministry of Justice, and other government and private partners.Publication Mongolia Quarterly Economic Update, July 2010(Washington, DC, 2010-07)The improvement in public finances since last year, coupled with buoyant revenue due to the commodity price recovery, has led to growing pressures for increased government spending. Recently approved budget amendments envisage a 4.5 percent of gross domestic product (GDP) increase in spending on the originally approved 2010 budget, while the Mid-Term Budget Framework (MTBF) for 2011-2013 projects another 12.1 percent of GDP increase in spending in 2011. The main driver for the increases is the execution of promises made by both coalition parties to distribute monthly percentage rate, or MNT 1.5million (around US$1000) to each citizen in the form of cash and non-cash handouts and large public sector wage increases planned for October of this year. If these public spending plans materialize, they will set the stage for a renewed bout of high inflation and a possible return to the macroeconomic vulnerability characteristic of the boom-and-bust cycle of the recent past. In the real sector, the impact of increasing inflation is evidenced through a decline in real wages. The latest informal wage survey indicates that on average, workers' nominal wages have increased by about 10 percent from January 2010 to June 2010; this is because of an increase in job opportunities in the construction sector. Real wages, however, have declined on average due to the significant increase in the consumer price index.Publication Debt Management Performance Assessment : Papua New Guinea(Washington, DC, 2010-12)At the request of the Government of Papua New Guinea (PNG), a mission comprised of Jeff Chelsky (PRMVP, mission lead), Tomas Magnusson (BDM, consultant), Greg Horman (BDM, consultant) and Tim Bulman (EAP, country economist), visited Port Moresby between November 22nd and December 3rd to undertake a DeMPA exercise. The team met with officials from the Department of Treasury, Bank of Papua New Guinea, Department of Finance, Department of National Planning and Monitoring, State Solicitor's Office, Auditor General's Office, Independent Public Business Corporation (IPBC), AUSAid, Asian Development Bank, ANZ Bank, Nambawan Super, and Bank South Pacific (BSP). This report reflects comments received from the PNG authorities in February 2011. The mission found that, in a number of areas, PNG meets or exceeds minimum DeMPA requirements. Strengths include the quality of the debt management strategy, the framework for domestic debt issuance, coordination with monetary policy, and the legal framework (except for the issuance of T-bills for which the law contains no explicit borrowing purposes). Looking ahead, the Government has expressed its intention, as part of the 2011 budget and its updated 2011 Medium-term Debt Management Strategy, to remove the nominal cap on external debt, replacing it with a cap of 30 percent of Gross Domestic Product, or GDP. The commitment to allocate a portion of excess government revenue to debt reduction will only apply when the debt-to-GDP ratio exceeds 30 percent of GDP. At the same time, the Government has reiterated its commitment to reducing the exchange rate risks to its debt portfolio by targeting 40 percent of total debt over the medium term for the external portion of the portfolio. Interest rate risk will be reduced through continued efforts to extend the maturity of domestic debt.Publication Guide to the Debt Management Performance Assessment Tool(Washington, DC, 2008-02-05)The purpose of this document is to provide guidance and supplemental information to assist with country assessments of debt management performance, using the Debt Management Performance Assessment (DeMPA) tool. The DeMPA is a methodology used for assessing public debt management performance through a comprehensive set of 15 performance indicators spanning the full range of government Debt Management (DeM) functions. It is based on the principles set out in the International Monetary Fund (IMF) and World Bank guidelines for public debt management, initially published in 2001 and updated in 2003. It is modeled after the Public Expenditure and Financial Accountability (PEFA) framework for performance measurement of public financial management. The DeMPA has been designed to be a user-friendly tool to undertake an assessment of the strengths and weaknesses in government DeM practices. This guide provides additional background and supporting information so that a no specialist in the area of debt management may undertake a country assessment effectively. The guide can be used by assessors in preparing for and undertaking an assessment. It is particularly useful for understanding the rationale for the inclusion of the indicators, the scoring methodology, and the list of supporting documents or evidence required, and the questions that could be asked for the assessment.Publication Debt Management Performance Assessment : Ethiopia(Washington, DC, 2013-06)The DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions. The DeMPA tool presents debt performance indicators along with a scoring methodology. This report pertains to a debt management performance assessment of Ethiopia in 2013, and provides an overview of strengths and weaknesses in government debt management. The following are the significant findings of this assessment: 1) no formal debt management strategy in place, although significant progress has been made over time; 2) there is good coordination and information sharing between the fiscal and monetary authorities and the debt managers; 3) There are documented procedures for external and domestic borrowings as well as for on-lending and loan guarantees; 4) an efficient single treasury account is not yet in place, and surplus cash is invested at low rates; 5) there is an understanding of operational risk but not yet a formal framework for operational risk management; and 6) there are complete and timely debt records for all central government debt and guarantees, with appropriate evaluation and disclosure of information on total central government debt management operations.
Users also downloaded
Showing related downloaded files
Publication Strengthening the Non-Conventional and Rural Energy Development Program in the Philippines : A Policy Framework and Action Plan(Washington, DC, 2001-08)As articulated in the new energy plan for 1999-2008, the key sector objectives for the Philippines energy sector remain security of energy supply, affordable prices, and an energy infrastructure compatible with broader social and environmental objectives. Ths report is organized as follows: Chapter 1 briefly lays out the social, environmental, and economic justifications for developing non-renewable energy resources (NRE) against the backdrop of privatization and reform of the energy sector. It reviews the experience with NRE from the 1970s to the present, highlighting some important lessons learned from both successful and failed initiatives. Chapter 2 reviews the commercial status and current and expected costs internationally of NRE technologies of potential usefulness. It distinguishes between immediate and long-term potential, small- and large-scale systems, and rural and urban applications, as well as reviewing the status of several off-grid and grid-connected technologies. Chapter 3 examines how existing and impending policies, legislation, incentives, procedures, and institutional arrangements affect, positively or negatively, the commercialization of NRE in the Philippines. Chapter 4 outlines near-term investment possibilities in off-grid electrification and large-scale wind power. The final chapter outlines some specific actions that need to be taken to pursue the priority investments identified. the chapter then reviews multilateral and bilateral assistance.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Labor Market Experience and Falling Earnings Inequality in Brazil: 1995–2012(Published by Oxford University Press on behalf of the World Bank, 2021-03-25)The Gini coefficient of labor earnings in Brazil fell by nearly a fifth between 1995 and 2012, from 0.50 to 0.41. The decline in other measures of earnings inequality was even larger, with the 90-10 percentile ratio falling by almost 40 percent. Applying micro-econometric decomposition techniques, this study parses out the proximate determinants of this substantial reduction in earnings inequality. Although a falling education premium did play a role, in line with received wisdom, this study finds that a reduction in the returns to labor market experience was a much more important factor driving lower wage disparities. It accounted for 53 percent of the observed decline in the Gini index during the period. Reductions in horizontal inequalities – the gender, race, regional and urban-rural wage gaps, conditional on human capital and institutional variables – also contributed. Two main factors operated against the decline: a greater disparity in wage premia to different sectors of economic activity, and the “paradox of progress”: the mechanical inequality-increasing effect of a more educated labor force when returns to education are convex.Publication Myanmar Energy Sector Update(Washington, DC: World Bank, 2024-07-15)Increasing the power supply-demand gap remains the major challenge to securing reliable electricity services in Myanmar. This report presents the recent dynamics in both on-grid and off-grid electricity generation to understand the complexities related to the performance of the power sector in Myanmar.Publication The Growth and Performance of Affordable Housing Finance Lenders in India(Washington, DC: World Bank, 2022-05-09)Anecdotal studies have highlighted the recent rapid growth of so-called affordable housing finance companies across India. These new lenders are reported to be using a high-touch approach common to microfinance to provide mortgages to households that are newer to credit, have irregular incomes, and live in smaller urban centers. As there is no specific license type for these lenders, this paper uses detailed credit bureau data to identify which lenders could be tagged as affordable housing finance companies. Using several classification techniques, the paper then assesses their growth and performance. The results vindicate the anecdotal studies and show that this nascent sector grew at an average annual compound growth rate of 27–32 percent between 2016 and 2020. Affordable housing finance companies have been able to lend to more marginalized borrowers who are newer to credit and do so in a markedly different way than other lenders. Delinquencies at affordable housing finance companies are higher only for smaller loans, while risk-adjusted lending spreads are higher for all affordable housing finance company loan sizes. This suggests that, thus far, the approach is profitable and sustainable. Looking forward, this lending model could be useful for other countries to explore given the incipient success in India, although there are crucial capital market and institutional features that are unique to India. The paper also discusses demand-side subsidies for mortgages in India and identifies opportunities to improve the targeting of the program.