Medium-Term Debt Management Strategy (MTDS)
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- Medium-Term Debt Management Strategy (MTDS)
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Course overview
- Aims at building capacity in developing and implementing a sound medium-term debt management strategy (MTDS).
- Trains officials on the joint IMF-WB MTDS framework to illustrate government cost and risk tradeoffs associated with different debt management strategies.
- Focuses on managing the risk exposure embedded in a debt portfolio, in particular, the potential variation in debt servicing costs and its budgetary impact.
- Emphasizes analysis of cost-risk trade-offs of alternative debt management strategies, utilizing the MTDS analytical tool (MTDS AT) developed by the IMF and WB.
- Considers composition of the debt portfolio, macroeconomic indicators, market conditions, potential sources of financing, and linkages with the broader medium-term macroeconomic framework.
Target audience and qualifications
- 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.
Analytical tools and scenarios
- Use of the MTDS analytical tool (MTDS AT) developed by the IMF and WB to:
- Assess various financing strategies under multiple scenarios.
- Compare cost/risk trade-offs involved in alternative strategies.
- Scenario work includes:
- Formulating different market risk scenarios (baseline and shock scenarios), adapting them to the country's specific situation.
Learning outcomes / Course objectives
- 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.
- Use the quantitative MTDS analytical tool that accompanies the MTDS framework to assess various financing strategies under these scenarios and compare the cost/risk trade-offs involved.
- Formulate a strategy that is in line with debt management objectives.
- Present the results of the analysis in a manner that enhances its value for policy purposes.