BACKGROUND

Following the relaxed global financing conditions that prevailed in the aftermath of the global financial crisis, developing countries increased the use of riskier financing instruments including Eurobonds and syndicated loans to cover their financing needs. At the same time, grace periods on new debt have been declining and terms for new debt have become more expensive, while the level and volatility of spreads have increased. Against this background, debt management strategies should be formulated, taking into account the composition of the debt portfolio, macroeconomic indicators, market conditions, potential sources of financing, and the linkages with broader medium-term macroeconomic frameworks. Further, based on the selected debt management strategy, countries should design Annual Borrowing Plans (ABPs) and auction calendars. As part of MEFMI, efforts to help member countries to design debt management strategies to guide borrowing operations and ensure that financing is accessed at favourable costs and minimum risk, MEFMI in collaboration with the IMF and World Bank, will offer a regional course on MTDS and ABPs.

OBJECTIVE

The objective of this course is to impart knowledge and skills to participants on the use of the IMF/World Bank MTDS and ABP Analytical Tools (AT) to develop debt management strategies and ABPs.

CONTENT

The course will cover the following topics:

1. Overview of the MTDS framework and description of the revised AT;

2. Identifying the objectives and scope for a debt management strategy;

3. Debt management and macroeconomic framework, including challenges induced by COVID-19;

4. Market rates (interest rate and exchange rates);

5. Financing sources;

6. Designing alternative strategies using the MTDS analytical tool;

7. Processes for review and approval of debt management strategy;

8. The MTDS Document;

9. Role and preparation of the MTDS and the ABP;

10. Relationship between the MTDS, the ABP and the auction calendar;

11. Introduction of the ABP Tool and tailored MTDS AT with ABP output worksheet; and

12. Implementing the MTDS and ABP.

TARGET GROUP

This course targets middle level officials from Ministries of Economy, Finance, Economic Planning and Development, and Central Banks responsible for middle office functions of debt management.