Preparing an Annual Borrowing Plan
Technical Notes and Manuals, September 16, 2025
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- Preparing an Annual Borrowing Plan
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Bibliographic details
- Authors: Oumar Dissou, James Knight, Miriam Tamene, Leandro Secunho, Diego Rivetti
- Published: September 16, 2025
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9798229011433.005
Purpose and scope
- An Annual Borrowing Plan (ABP) guides the short-term execution of a debt management strategy (DMS), which typically spans 3–5 years.
- An ABP requires high-frequency data and detailed planning, considering:
- gross financing needs (GFN),
- seasonal revenue and expenditure patterns,
- debt service obligations.
- The ABP is presented as a technical guidance note spanning 43 pages (Technical Notes and Manuals No. 2025/012).
Key benefits and functions
- Identifies refinancing risks.
- Assesses financing feasibility.
- Detects funding gaps.
- Contributes to market development and investor engagement.
- Enhances transparency in government borrowing and securities issuance.
- Links debt management with broader macroeconomic components, including:
- fiscal and monetary policy,
- cash flow forecasting,
- market liquidity.
Implementation challenges and context
- Emerging market and low-income countries have improved their ability to develop DMS but face ongoing implementation challenges in translating DMS into executable short-term plans.
- Preparing an ABP requires alignment across government units and timely, granular data.
Core steps in preparing an ABP
- Identify the debt coverage.
- Analyze gross financing needs (GFN).
- Evaluate market conditions.
- Select borrowing instruments.
- Align borrowing choices with DMS targets.
- Obtain policymaker approval once finalized.
- Publish the ABP, with publication practices varying by country:
- A high-level borrowing overview should accompany the national budget.
- A more detailed version should be published subsequently.
- An issuance calendar should be published for government securities.
Practical recommendations for good practice
- Maintain high-frequency cash flow forecasting and data collection to support short-term execution.
- Use the ABP to proactively manage refinancing schedules and seasonal liquidity pressures.
- Publish an issuance calendar to support market development and investor engagement.
- Ensure coordination between debt management, fiscal policy units, and the central bank to align liquidity and monetary considerations.
Content in this bundle
- Preparing an Annual Borrowing Plan; September 2025; TNM/2025/12