Training Program

This course, presented by the IMF Monetary and Capital Markets Department, is intended to broaden participants’ understanding of the main policy and operational issues in sovereign risk management, techniques used for active debt operations and debt market development, and sustained capital market access. Emphasis is given to the risk measurement of a bonded debt portfolio in the context of a sovereign’s overall balance sheet (assets and liabilities). The course specifically focuses on the lessons from the global financial and economic crisis for managing sovereign risk, public debt, and the interface with capital markets and financial stability. The course considers the following: „„

• Effective organizational arrangements;
• coordination with key policy areas, including monetary and fiscal policy;
• building blocks for a framework for sovereign liability management, including objectives and identification of risks, and accountability;
• technical and operational aspects of risk management;„„
• identifying and monitoring sovereign risk, and good principles for stress testing a sovereign debt portfolio;
• measuring key portfolio risks, including currency, interest rate, and refinancing exposures;
• technical and implementation aspects of developing a medium-term debt management strategy; and
• formulating debt issuance strategies taking account of the link between debt management and debt sustainability analysis.