External Debt Management Information Systems

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External Debt Management Information Systems

• Workshop on External Debt Statistics
• Joint Africa Institute, Tunis, Tunisia
• 7 18 November 2005

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What this session will cover

• Why use computerised MIS?
• General Characteristics
• Functions (recording/processing/reporting/analysis
  )
• Data Quality
• Linkages data exchange
• Sound practices when using MIS

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External Debt MIS the Guide

• Chapter 18 External Debt Monitoring Systems
• Chapter 11 Government Public Sector Debt
  Statistics
• Chapter 7 Box 7.1 High Frequency Debt Monitoring
  Systems

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Why use MIS?

• Structured data standard methodology
• Speed accuracy
• (computers can handle large volume of data and
  calculate with high degree of precision (e.g.
  Annuity Exchange rate conversion PV Accrual
  yield duration etc.)
• Ability to group and aggregate - slice and dice
• What if analysis
• Accessibility

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MIS for debt management
Debt Management objectives
Legal and Institutional Framework
Management Information Systems
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General characteristics

• Act as a central repository for all external debt
• Capture data instrument by instrument ( at
  tranche level if applicable), transaction by
  transaction
• Database needs to be validated regularly
• Satisfy reporting analytical needs
• Integrated within debt management operations
• Must be documented, supported and must evolve
  with changes in debt management

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Functions of MIS

• Debt Recording and Operations
• Reporting
• Debt Data Analysis
• Linkages data interchange with other systems

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Debt recording and operations

• Maintain an inventory of all external debt
• Record basic instrument details and terms
• Record restructuring terms
• Record actual disbursements and debt service
• Record other information (exchange interest
  rates etc.)

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Instrument details
Source EDS page 100
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Terms
Source EDS page 100
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Other
Source EDS page 100
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Data Requirements
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Management Information System
Users
Projections of estimated flows
MIS for External Debt
Debt Stocks and flows
Payments Due
Linkages data interchange with other systems
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Debt Data Quality

• Data quality is crucial
• Many countries still face data quality issues
• Measures need to be put in place to validate
  inputs, processing and outputs.

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Debt Data Quality Framework for external debt

• Look at external debt statistics in terms of

• Accuracy Reliability
• Source
• Validation
• Revision
• Serviceability
• Periodicity timeliness
• Consistency
• Revision policy practice
• Accessibility
• Data Accessibility
• Metadata
• Assistance to users

• Quality
• Legal and institutional environment
• Resources
• Relevance
• Integrity
• Professionalism
• Transparency
• Ethical Standards
• Methodological soundness
• Concepts and definitions
• Scope
• Classification/Sector breakdown
• Basis for recording

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Reporting

• MIS should be flexible enough to produce a
  variety of reports for internal and external use
• Modern day facilities include
• Pre-defined as well as ability to write
  customised reports
• Selection/Filter facilities allowing
  selection/drill down
• Report Batches and Scheduler
• Export reports to Excel/HTML/PDF
• Graphics

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Types of Reports

• Individual instruments Loan Ledger/Transaction
  journal
• Aggregate reports broken down by various
  categories
• Analytical reports
• Other data (exchange interest rates)

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Dissemination of debt data

• Objectives
• Provide information
• Engender greater transparency confidence
• Dissemination should be on a frequent timely
  basis
• Concepts methodology, definitions,
  classifications should be explained
• Revisions should also be explained
• Many countries are developing an Information
  Strategy

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Reporting Internal External

• Internal users within DMO government public
  corporations CSO Research institutions
  universities press
• External Users
• IMF
• World Bank Data Reporting System (DRS) and World
  Bank External Debt (WBXD)
• External users (e.g. IMF/WB missions)

• Regular basis for monitoring and reporting to
  management and PCs
• Ad-hoc in other cases
• GDDS At least Annual SDDS Quarterly within
  3mo.
• Use built in electronic links-Quarterly
• Ad Hoc/Yearly (e.g. Article IV)

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Debt Data Analysis

• Portfolio Analysis
• Evolution and Composition of external debt
• Assessing impact of new borrowing
• Impact of debt restructuring
• Compute debt indicators based on economic data
  (nominal and PV terms)
• What if analysis (exchange interest rate)
• Link to debt sustainability and/or risk
  management systems

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Linkages data interchange with other systems
Primary Market
Secondary Market
Electronic Trading Systems Bloomberg Stock
Exchange (DEX)
PDs
PDs
PDs
Central Depository System
CBSLNET
Electronic Auctioning System
CS-DRMS 2000 Domestic External debt -
Reports - Management Tools - Links to WB
Debt Sustainability/ Risk Management Software

• Linkages to other Systems
• Accounting
• Budget
• Treasury systems

Electronic Payments System
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Linkages data interchange with other systems
Source Information Systems for Government Fiscal
Management, WB 1999
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Sound practices for MIS

• MIS needs to be managed professionally
• Need for trained IT staff
• Hardware and Maintenance
• Security aspects
• Disaster Recovery Procedures
• Procedures Manual

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Visit our web site at www.csdrms.org
Thank You!

• Workshop on External Debt Statistics
• Joint Africa Institute, Tunis, Tunisia
• 7 18 November 2005