Weist, DanaTogo, ErikoPrasad, AbhaO'Boyle, William2012-03-192012-03-192010-07-01https://hdl.handle.net/10986/3856The magnitude of the public liabilities incurred as a result of the unprecedented government action in the wake of the financial crisis of 2008-2009, and the consequences of exiting from the projected high debt scenario, have become a major source of concern about a future sovereign debt crisis. As Low-Income Countries (LICs) face unique challenges in debt management (DeM) due to their more limited financing sources and higher capacity constraints, their ability to successfully manage their public debt burdens effectively through a crisis of this magnitude is far from assured. Therefore, the challenges of the last two years will require a re-evaluation of existing DeM strategies in LICs, focusing on the identification of institutional weaknesses and the assessment and mitigation of potential risk. It is in this context that this paper examines the application of two global public goods in LICs: the Debt Management Performance Assessment (DeMPA) and the Medium-Term Debt Management Strategy (MTDS) tools. The results of the application of these tools from 2007-2009 provide valuable information to policymakers and other stakeholders on the development of sound public DeM practices and analytical capacity, with the goal of strengthening the public balance sheet and reducing vulnerability to financial crises.CC BY 3.0 IGOBALANCE SHEETBALANCE SHEETSBANK ACCOUNTBANK ACCOUNTSBANK CREDITORBANK LENDINGBANKING CRISISBONDBORROWERBORROWERSBORROWING COSTSBORROWING REQUIREMENTSBORROWING STRATEGIESBUDGETBUDGET DEFICITCAPACITY BUILDINGCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ACCOUNTSCAPITAL FLOWSCAPITAL INFLOWCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKET REFORMCAPTIVE INVESTORCASH BALANCECASH BALANCESCASH FLOWCASH FLOWSCASH MANAGEMENTCENTRAL BANKSCOMMERCIAL CREDITSCOMMERCIAL TERMSCOMMODITY PRICESCONTINGENT LIABILITIESCONTINGENT LIABILITYCOUPONCOUPON RATESCREDITORCREDITORSCURRENCY COMPOSITIONCURRENCY RISKCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBTDEBT BURDENDEBT BURDENSDEBT COMPOSITIONDEBT CRISISDEBT DATADEBT FINANCINGDEBT FLOWSDEBT ISSUANCEDEBT LEVELSDEBT MANAGEMENTDEBT MANAGEMENT GUIDELINESDEBT MARKET DEVELOPMENTDEBT POLICYDEBT RELIEFDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICINGDEBT SERVICING COSTSDEFICITDEFICITSDEPOSITSDERIVATIVESDEVELOPING COUNTRIESDEVELOPING COUNTRYDOMESTIC BORROWINGDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC DEBT MARKETDOMESTIC DEBT MARKETSDOMESTIC FINANCIAL MARKETDOMESTIC INTEREST RATEDOMESTIC INTEREST RATESDOMESTIC MARKETDOMESTIC MARKETSEFFICIENT MARKETEMERGING MARKETSEQUITYEXCHANGEEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL BORROWINGEXTERNAL BORROWINGSEXTERNAL DEBTFINANCEFINANCIAL CONTAGIONFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTRUMENTSFINANCIAL MARKETFINANCIAL RISKSFINANCIAL SHOCKSFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING REQUIREMENTFISCAL POLICYFIXED INVESTMENTFOREIGN BANKFOREIGN BANKSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INTERESTFOREIGN INVESTORSFOREIGN MARKETFOREIGN MARKETSFRAUDFUTUREFUTURE CASH FLOWSGLOBAL MARKETSGOODGOODSGOVERNMENT ACCOUNTSGOVERNMENT BANKGOVERNMENT DEBTGOVERNMENT DEBT SECURITIESGOVERNMENT REVENUEHUMAN CAPITALHUMAN RESOURCEINDEBTED COUNTRIESINDEBTEDNESSINFLATIONINFLATION RATESINFRASTRUCTURE INVESTMENTINSTITUTIONAL CAPACITYINSTRUMENTINTERESTINTEREST COSTINTEREST COSTSINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATEINTEREST RATE RISKINTEREST RATESINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEVELOPMENTINVESTMENTINVESTOR BASEISSUANCEISSUANCE OF BONDSLEGAL FRAMEWORKLEGAL FRAMEWORKSLENDERSLIABILITIESLIQUIDITYLOANLOAN GUARANTEESLOCAL CURRENCYLONG MATURITY PERIODSLONG TERM DEBTMACROECONOMIC ENVIRONMENTMACROECONOMIC MANAGEMENTMARKET BORROWINGMARKET CONDITIONSMARKET CONTAGIONMARKET ECONOMYMARKET ENVIRONMENTSMARKET FOR GOVERNMENT DEBTMARKET RISKMARKET SHARESMATURITYMONETARY FUNDMONETARY POLICYMULTINATIONAL BANKSOPPORTUNITY COSTOPTIONOPTIONSOUTSTANDING DEBTPAYMENT SYSTEMPENSIONPENSION REFORMSPOLITICAL RISKSPOLITICAL UNCERTAINTYPORTFOLIOPORTFOLIOSPOVERTYPRINCIPAL REPAYMENTPRINCIPAL VALUEPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE CREDITORSPRIVATE DEBTPUBLIC BORROWINGPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC DEBT MARKETSREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREMITTANCESREPAYMENT SCHEDULERESERVERESERVESRETURNSRISK EXPOSURERISK MANAGEMENTRISK PREMIUMSSECURITYSHARESHORT MATURITIESSOFT LOANSSOVEREIGN DEBTSTOCKSWAPSTIME OF DEFAULTTOTAL DEBTTRADE CREDITSTRANSACTIONTRANSACTIONSTRANSACTIONS COSTSTRANSPARENCYTREASURYVALUATIONVARIABLE RATEWorld Bank10.1596/1813-9450-5372