Debt and Cash Management Seminar

BACKGROUND

Effective cash management ensures that cash is available when it is needed to facilitate the effective implementation of a budget. Government cash management can be defined as the strategy and associated processes for cost-effective management of the government’s short-term cash flows and cash balances, both within government, and between government and other sectors. Effective cash management ensures that government obligations can be met as they fall due, minimises idle balances and associated costs, contributes to the development of short-term money markets and enhances transparency of government flows. On the other hand, the objective of public debt management is to meet government obligations in the most cost-effective way by meeting cash deficits. Thus, the training seeks to expound on the interactions between these two areas. Results from the Debt Management Performance Assessment (DeMPA) missions undertaken in the past few years indicate that most countries within the MEFMI region lack skills in undertaking cash management operations. The lack of a coordinated framework for cash management results in idle cash in banks whilst the government continues to borrow to finance its obligations, thereby increasing government debt obligations. Recognising these challenges, MEFMI will provide training in debt and cash management.

OBJECTIVES

The seminar aims to:

1. Increase the participants’ expertise on sound cash management practices;

2. Enhance participants’ understanding of the key linkages between public debt and cash management; and

3. Foster coordination between the debt and cash management functions within the Ministries of Finance.

CONTENT

The seminar will focus on the following areas:

1. Coordination between cash and debt management: important linkages;

2. Fundamental features of government cash management;

3. Cash management instruments;

4. Establishing treasury single accounts;

5. Cash forecasting;

6. Cash Balance management;

7. Cash buffers;

8. Creation and benefits of cash buffers;

9. Principles of public debt management; and

10. Formulating and implementing annual borrowing plan and issuance calendar.

TARGET GROUP

This seminar targets mid-level officials responsible for debt and cash management operations in the ministries of finance, planning and or economic development as well as central banks.