World Bank2013-10-032013-10-032013-06https://hdl.handle.net/10986/16074Since gaining its independence 23 years ago, Namibia has established an enviable track record of political stability, prudent macroeconomic policies, moderate growth, poverty reduction, and natural resource conservation. The country has achieved these gains while facing constraints imposed by geography, legacies of apartheid and colonialism, and the challenges of constructing a national government. Daunting challenges remain, however. Namibia suffers from chronic high unemployment, the ravages of HIV/AIDS, and one of the world most skewed distributions of income. The structure of the economy has remained fundamentally unchanged since Independence: minerals and metals make up the majority of exports; the public sector remains the largest employer; and there has been little investment in labor-intensive manufacturing, which in many countries has absorbed low-skilled labor exiting traditional agriculture. This report uses the Medium-Term Debt Management Strategy (MTDS) framework developed by the International Monetary Fund (IMF) and the World Bank to analyze options facing the GRN as it prepares the new Sovereign Debt Management Strategy (SDMS). This framework emphasizes the explicit analysis of relative costs and risks in a debt management strategy, the linkages between the debt strategy and other macroeconomic policies, and the strategy's consistency with debt sustainability. The report opens with a review of the GRN's current debt management strategy, the sources of financing available to the government, and the macroeconomic environment. The report then applies the MTDS analytical tool to analyze costs and risks of alternative debt management strategies that were developed by MOF participants in the November 2012 capacity-building exercise. It also examines domestic debt market development and contingent liabilities arising from government guarantees, two issues of special concern to the GRN. Finally, it discusses institutional arrangements and implementation issues.en-USCC BY 3.0 IGOACCOUNTINGANNUAL BORROWING PLANARREARSASSET MANAGEMENTAUCTIONSBALANCE OF PAYMENTSBASIS POINTSBENCHMARK BONDSBENEFICIARIESBENEFICIARYBONDBOND ISSUEBOND ISSUESBOND MARKET CAPITALIZATIONBOND MARKET TRADINGBOND MARKETSBORROWERBORROWING COSTSBORROWING STRATEGIESBROKERSCAPITAL INFLOWSCAPITAL INVESTMENTSCAPITAL MOBILITYCASH FLOWCENTRAL GOVERNMENT DEBTCENTRAL SECURITIES DEPOSITORYCOLLECTION PROCESSCOMMERCIAL BANKSCOMMERCIAL TERMSCOMMODITY PRICESCOMPOSITION OF DEBTCONTINGENT LIABILITIESCONTINGENT LIABILITYCORPORATE BONDSCOUPONCOUPON RATECREDIT RISKCREDIT RISK EVALUATIONCREDIT RISK EXPOSURECREDITORSCURRENCYCURRENCY DEPRECIATIONCURRENCY RISKCURRENT ACCOUNT DEFICITDEBTDEBT CATEGORYDEBT COMPOSITIONDEBT DATADEBT DATABASEDEBT LEVELDEBT MANAGEMENTDEBT MARKET DEVELOPMENTDEBT OPERATIONSDEBT RATIODEBT SERVICEDEBT STOCKDEFAULT RISKSDEFAULTSDEVELOPMENT BANKDEVELOPMENT FINANCEDISBURSEMENTDOMESTIC BONDDOMESTIC BOND MARKETDOMESTIC BONDSDOMESTIC BORROWINGDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC DEBTDOMESTIC DEBT MARKETDOMESTIC DEBT SECURITIESDOMESTIC MARKETEMERGING ECONOMIESEUROBONDEXCESS LIQUIDITYEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXTERNAL BORROWINGEXTERNAL DEBTEXTERNAL FUNDINGFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL STATEMENTFINANCIAL STATEMENTSFISCAL DEFICITFISCAL DEFICITSFISCAL POLICIESFISCAL POLICYFIXED INTERESTFIXED INTEREST RATEFIXED INTEREST RATESFLOATING RATEFLOATING RATE DEBTFOREIGN CURRENCYFOREIGN CURRENCY RISKFOREIGN EXCHANGEFOREIGN EXCHANGE DEBTFOREIGN EXCHANGE RISKFOREIGN LOANSFORWARD CURVEFORWARD RATESGLOBAL ECONOMYGOVERNMENT BONDGOVERNMENT BONDSGOVERNMENT BORROWINGGOVERNMENT BUDGETGOVERNMENT DEBT MARKETGOVERNMENT DEFICITGOVERNMENT EXPENDITURESGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SECURITIESGRACE PERIODGRACE PERIODSGROSS DOMESTIC PRODUCTGUARANTEE FEEGUARANTEE FEESHOUSEHOLD INCOMEINCOME INEQUALITYINFLATIONINFLATION RATEINFRASTRUCTURE INVESTMENTSINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE COMPANIESINTEREST PAYMENTSINTEREST RATEINTEREST RATE RISKINTEREST RATE RISKSINTERNATIONAL BONDINTERNATIONAL BOND MARKETSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETINTERNATIONAL MARKETSINTERNATIONAL SETTLEMENTSISSUANCEISSUANCESISSUERS OF DEBTLEGAL FRAMEWORKLENDERSLEVEL OF RISKLEVYLIABILITYLIQUID BOND MARKETLIQUIDITY PREMIUMLOANLOAN GUARANTEESLOAN RATESLOCAL CURRENCYLOCAL MARKETLONG TERM DEBTLONG-TERM INSTRUMENTSLONG-TERM MATURITIESMACROECONOMIC ENVIRONMENTMACROECONOMIC POLICIESMACROECONOMIC RISKSMACROECONOMIC STABILITYMARKET CONSTRAINTSMATURITIESMATURITYMEDIUM TERM NOTEMONETARY FUNDMONETARY POLICYNATIONAL TREASURYOUTSTANDING DOMESTIC DEBTOUTSTANDING LOANOUTSTANDING LOANSPARTICULAR DEBTPENSIONPENSION FUNDPENSION FUNDSPOLITICAL STABILITYPORTFOLIOPORTFOLIO RISKPRIVATE INVESTMENTPROBABILITY OF DEFAULTPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC DEBT STOCKPUBLIC FINANCEREPAYMENTREPAYMENTSRESERVESRISK ASSESSMENTSRISK AVERSIONRISK EXPOSURERISK FACTORSRISK MANAGEMENTRISK OF LOANSECONDARY BOND MARKETSECONDARY MARKETSECURITIESSECURITIES MARKETSOVEREIGN BONDSOVEREIGN DEBTSTOCK EXCHANGESUB-NATIONAL FINANCET-BILLT-BILLST-BONDSTAXTOTAL DEBTTRANSACTIONTRANSPARENCYTREASURIESTREASURYTREASURY BILLTREASURY BILLSTREASURY BONDSTRUSTEESTURNOVERUNSECURED DEBTSYIELD CURVEWorld Bank10.1596/16074