Public Debt Management in Developing Countries:

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Public Debt Management in Developing Countries

• Key Policy, Institutional, and Operational issues
• by Tomás J. Baliño and V. Sundararajan
• Centennial Group Holdings, LLC

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Table 1 Evolution of Foreign Currency and Short
Term Debt in Selected Countries
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Table 2 Selected foreign debt burden indicators
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Public debt management issues

• Requirement Sound macroeconomic policies
• Fiscal
• Monetary
• Objectives
• Sustainable debt path (DSA)
• Minimize government debt cost (Guidelines)

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Guidelines for Public Debt Management

• Debt management objectives and coordination
• Transparency and accountability
• Institutional framework
• Debt management strategy
• Risk management framework
• Development and maintenance of an efficient
  market for government securities

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Implementing Guidelines--Progress

• Improving Debt Structure
• Developing and Publishing Debt Management
  Strategy
• Improving Governance Framework
• Improving Transparency and Communication with the
  Market
• Developing Domestic Public Debt Markets

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Implementing Guidelines--Problems

• Incomplete Strategies
• Fragmented Responsibilities
• Lack of Medium-Term Debt Strategy

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Key Issues

• Comprehensive, publicized debt strategy
• Asset-liability management framework
• Coordination with central bank
• Development of domestic debt market

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Conclusions

• Progress has been made
• Need to avoid past problems
• Sound macroeconomic management
• Upgraded debt management
• Country ownership and international cooperation