World Bank Debt Management Facility, Phase III

Public debt levels in many low and middle-income countries have increased substantially in recent years, exposing dozens of countries to high risk of debt distress. Moreover, governments increasingly use complex and unorthodox debt instruments, which makes their debt more risky. The DMF is one of the main instruments of the World Bank and the IMF to support developing countries in managing these complexities and risks and to bring their public debt levels on a sustainable trajectory.

The overall goal of DMF III is to strengthen debt management capacity in low and lower middle-income countries to enable governments to finance their borrowing prudently with an appropriate cost-risk mix. This will contribute to macro-economic stability and support sustainable debt levels over the long term. Moreover, DMF III will increase accountability and transparency in relation to public debt.

Improved debt management structures in at least 10 countries

Improved debt management strategies in at least 10 countries, and publication thereof

At least 5 more countries that publish an annual borrowing plan

At least 8 additional countries that report to parliament on public debt

At least 5 additional countries that have improved their cash management practices

At least 5 countries with better developed capital markets

At least 5 additional countries that started publishing debt statistical bulletins

At least 10 countries with improved coordination between debt management and fiscal policy

At least 6 countries that have undertaken a debt sustainability analysis

Principaux résultats attendus:  

More than 300 in-country technical assistance missions

More than 120 national and regional trainings and workshops

At least 5 international debt manager fora

At least 10 new knowledge products

At least 20 representatives from developing countries have spent several months with the DMF program in the World Bank headquarters

Principaux résultats antérieurs:  

DMF II has supported over 60 low and lower middle-income countries in improving their public debt management. The following results were achieved between 2013 and 2019:

The number of DMF-eligible countries having a debt management strategy rose from 14 to 31- the quality of these strategies improved measurably.

The percentage of DMF-eligible countries with satisfactory managerial structures rose from 8 percent to 63 percent.

The percentage of DMF-eligible countries with improved reporting and publication of debt management strategies rose from 3 percent to 24 percent.

The percentage of DMF-eligible countries with improved coordination with fiscal policy rose from 12 percent to 34 percent.

5 countries have improved legal frameworks.