Medium-Term Debt Management Strategy (MTDSx)

Source details

Aimed at building capacity to develop a medium-term debt management strategy (MTDS), contributing to improved public debt management.
Explains the joint International Monetary Fund-World Bank (IMF-WB) MTDS framework.
Provides comprehensive training on the accompanying analytical tool, MTDS AT.
The MTDS AT is useful for analyzing quantitatively:
- The cost-risk characteristics of an existing debt portfolio.
- The cost-risk trade-offs of alternative financing strategies.
Participants are taught to develop financing strategies by considering:
- Composition of the existing debt portfolio.
- Developments in key macroeconomic and market conditions.
- Potential sources of financing.
- Linkages with the broader medium-term macroeconomic framework, including debt sustainability.

Upon completion of the 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.
Design an annual borrowing plan for the first two years of the strategy period.