Development of Medium-Term Debt Management Strategy (MTDS)

Source details

Target Audience:
- Officials from debt management offices, ministries of finance, or central banks who deal with public debt management.
Qualifications:
- Participants are expected to have a degree in economics or finance, or equivalent experience.

Aim:
- Build capacity in developing and implementing a sound medium-term debt management strategy (MTDS).
Framework and Tooling:
- Training on the joint IMF-World Bank MTDS framework.
- Extensive use of the MTDS analytical tool (MTDS AT) developed by the IMF and World Bank.
Analytical focus:
- Illustrate government cost and risk tradeoffs associated with different debt management strategies.
- Manage the risk exposure embedded in a debt portfolio, in particular, the potential variation in debt servicing costs and its budgetary impact.
- Take into account the composition of the debt portfolio, macroeconomic indicators, market conditions, potential sources of financing, and the linkages with the broader medium-term macroeconomic framework.
Format:
- Lectures and hands-on exercises involving extensive work with country data.

Upon completion of this course, participants should be able to:

Describe the steps in developing an MTDS (the IMF-WB MTDS framework).
Analyze the central government debt portfolio to identify the costs and risks inherent in the existing debt.
Formulate different market risk scenarios (baseline and shock scenarios), adapting them to the country's specific situation.
Identify and assess various financing strategies under these scenarios and compare the cost/risk trade-offs involved.
Use the quantitative MTDS analytical tool that accompanies the MTDS framework.
Present the results of the analysis in a manner that enhances its value for policy purposes.
Formulate a strategy that is in line with debt management objectives.