World Bank Debt Management Facility, Phase II

Under the second programme phase, the IMF will join the DMF II as an implementing agency along side the World Bank. The DMF II will thus become a joint WB-IMF-implemented Trust Fund, administered by the World Bank. The modular approach developed under the first phase will be expanded to offer a programmatic support with a broad range of technical assistance (TA) modules, notably including capacity-building in the area of domestic and international capital markets and debt sustainability. As under the first phase, activities will be delivered in collaboration with regional implementing partners.

The overall objective of the DMF II is to strengthen public debt management capacity and institutions in low(er) income countries. The expected long term impact is to achieve improvements in debt management so as to enable governments to finance their public sector borrowing prudently with an appropriate cost-risk mix, thereby contributing to macroeconomic stability and to ensure sustainable debt levels over the long term.

Client countries demonstrate capacity to design and approve debt management strategies without external assistance and to implement reforms plans in the area of debt management.

Enhanced capacity of governments to analyse public debt portfolios and to formulate borrowing strategies that match development objectives with present and future capacity to repay within an overall macroeconomic and fiscal framework.

Medium-term debt management strategies that are consistent with fiscal sustainability and lead to robust portfolios are being implemented.

Strengthened identification, assessment and management of risks related to goverment debt portoflios and balance sheets.

Effective domestic debt market infrastructure consistent with the level of market development established.

Sustained international market access for issuance of international bonds and liability management operations conducted to reach the prefered risk profile of debt portfolio.

Principaux résultats attendus:  

Debt management capacity and institutions are assessed across a comprehensive set of debt management capacity indicators (DeMPA).

Technical assistance is delivered to authorities in beneficiary-led design of medium-term debt strategies, applying the Medium-term Debt Strategy (MTDS) toolkit.

Beneficiary countries prepare their own MTDS based on the training received.

Detailed programmes of Debt Management reform and capacity-building are prepared in close consultation with beneficiary authorities.

Training is delivered to debt management authorities and development partner's staff in the use of the DeMPA and MTDS and other related debt management tools.

Debt management knowledge, expertise and experience is shared among debt management country practicioners, service providers and other stakeholders. By

Principaux résultats antérieurs:  

By conducting repeat diagnostic assessments over time, the programme has been able to track progress at the country level. Early results of the assessments show an improvement in the legal framework and enhanced institutional frameworks governing loan guarantees (Malawi, Senegal, Sierra Leone among others) and upgraded or modernized organization structures and strenghtened middle offices (Burundi, Ghana, Nicaragua, Burkina Faso among others). Capacity-building in debt management activities has led to the use of debt management strategies based on cost-risk analysis and strengthened debt management analysis (Bangladesh, Burkina Faso, Ghana, Mozambique, and Nicaragua among others) and strengthened audit functions. Debt management offices also show a strengthened cash management, a better risk management and improved debt recording and reporting.

Phase 2 01.01.2013 - 31.12.2018   (Active)