Debt Management Performance Assessment : Mongolia

Abstract

A World Bank mission visited Ulaanbaatar April 3-11, 2008. The team consisted of Lars Jessen and Eriko Togo, World Bank Treasury. The objective was to undertake a comprehensive assessment of debt management operations using the Debt Management Performance Assessment tool (DeMPA) that was developed with a focus on Low Income Countries (LICs). A main reason for applying the tool in Mongolia was the opportunity to take stock of the progress in the debt management area achieved under the debt management sub-component of the World Bank Governance Assistance Program (GAP). The mission met with government officials from various departments in the Ministry of Finance, including the Debt Management Division, Bank of Mongolia, Mongolia National Audit Office, the State Audit and Inspection Committee, and a private bank. Mongolia scores relatively high on indicators related to governance and strategy development, coordination with macroeconomic policies, strategy implementation, and recording and reporting. Weaknesses reside in the areas of cash flow forecasting and cash management, and operational risk management. The latter include debt administration and data security, and segregation of duties, staff capacity, and business continuity.