MEFMI > AboutMEFMI > Programmes > Debt Management > Using The CS-DRMS 2000+ In Settlement Of Foreign Payment In A Debt Management Office

Using The CS-DRMS 2000+ In Settlement Of Foreign Payment In A Debt Management Office

  • June 7, 2016
  • Posted by: admin
  • Category: Debt Management
No Comments

By George M Kariuki
May 2007
Accurate and timely settlement of foreign payments remains a major challenge for many developing nations. This is partly due to the manual processes involved in preparing the payments. Another factor that affects the payment processes includes poor communication cha nnels between the creditors and the borrowers. Bills from the creditors may take a long time before they are received by the settlement sections. Unreliable databases also contribute to poor settlements of foreign debts.

Two of the most widely used systems for debt recording are the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS) 2000+ developed by the Commonwealth Secretariat (COMSEC) and the Debt Management and Financial Analysis System (DMFAS) developed by the United Nations Conference on Trade and Development (UNCTAD). These two systems so far, however, do not address the issue of settlement of foreign payments.

This paper is an attempt to demonstrate how the CS-DRMS 2000+ can be enhanced to assist in settlement of foreign debt payments. This would be a very cost effective venture since it would use an already established platform. Most of the data used for foreign settlement of loans is already recorded in the system which means that very little extra effort will be required.

This added functionality would, however, not make the CS-DRMS 2000+ a Financial Management System. It would only serve as an interface between the
CS-DRMS 2000+ and other financial systems.