Public Debt Management Advisory Services Annual MDB meeting on debt issues

1. Public Debt Management Advisory ServicesAnnual MDB meeting on debt issues The World BankTreasury1818 H Street, N.W.Washington, DC, 20433, USAtreasury.worldbank.org

2. What is the Public Debt Management Group (PDM)? Vice President and Treasurer: Kenneth Lay Banking and Debt Management BDM Capital Markets CMD Sovereign Investments Partnerships SIP Investment Management IMD Pension & Endowments PEN Quantitative Strategies, Risk and Analytics QRA Treasury Operations TRO Director: Jennifer Johnson-Calari Director: Doris Herrera-Pol Director: Myles D. Brennan Acting Director: John F. Gandolfo Director: John F. Gandolfo Director: GloriaGrandolini Director: Diann Martin PDM

3. What is our mission and approach? • Our mission: to partner with governments to build capacity in managing the risks of the sovereign debt portfolio • Our approach: practitioner to practitioner learning; global networking among peers through World Bank convening power; multi faceted engagements customized to client needs

4. How does the PDM group partner with clients? PDM partners with countries to develop or put in place governance arrangements, internal processes, resources, and staff capacity that will enable them to: • develop a robust medium-term debt management strategy with yearly updates, based on a sound analysis of cost and risk, taking account of macroeconomic and market constraints, and • execute that strategy efficiently, while managing operational risk in a prudent manner

5. What resources are available to clients? • Advisory work for individual countries is based on a comprehensive diagnostic of the public debt management process • Typically done in conjunction with domestic government debt market development • Typically on a cost-recovery basis beyond the diagnostic • Training and outreach • Workshops on developing and implementing debt management strategies, and ad hoc topics • Sovereign Debt Management Forum • Research and practitioners guides and knowledge briefs • Joint Bank/Fund Guidelines • Lessons learnt from 12-country Pilot Program • Technical notes on selected issues

6. Our areas of expertise • Governance: including legal framework, institutional arrangements and transparency • Debt management strategy and risk management (determining the composition of public debt) • Capacity and management of internal operations (organizational structure, training programs, processes and procedures, and systems) • Coordination with cash management, macro-economic policies, and debt market development • Debt managementstrategy implementation, including access to capital markets and use of derivatives

7. PDM country work: middle-income countries Typically delivered in three stages: • Needs Assessment/Initial Diagnostic: analysis of current situation including the development of domestic debt market (with FPD), and recommendations for reform • Reform Plan: support authorities in design process, sequencing activities, with timelines and costing • Implementation: usually by consultants and partners. PDM role is to develop ToR’s for consultants, act as sounding board, and ensure quality control. May occasionally get involved directly depending on comparative advantage Gemloc: PDM is co-chair of the steering committee for Gemloc Advisory Services, once it gets going

8. PDM country work: low-income countries In collaboration with PRMED • Developed the debt management performance assessment (DeMPA) tool, provides training, and leads and participates in DeMPA missions In collaboration with PRMED and IMF • Developed the Medium-Term Debt Management Strategy (MTDS) toolkit and participate in joint MTDS missions. Toolkit consists of: • Guidance Note • Excel based Analytical Tool

9. PDM advisory services since 2004 • A 12-country pilot program (2002 – 2005) developed tools for country work: diagnostic, reform plan design and implementation • Substantive work in 45 countries (of which 10 are IDA) including 3 sub-nationals, all in partnership with Regions • Since FY05, partnership with ECA and MNA RVPs and Government of Japan for training for debt managers • Since FY07, a partnership with PRMED for work in low income countries: DeMPA and MTDS (also with IMF) • Since FY08, a partnership with FPD to develop the TA component of Gemloc – opportunity to work with the top tier of developing countries • Broad support to country work, e.g. PER, FSAP, etc., and due diligence related to the use of IBRD financial products

10. Example of advisory assignments • Lebanon, Mongolia • Sounding board during implementation of reforms • Egypt • Initial engagement through DPL preparation • Needs assessment (jointly with FPD) • Request from MoF to help develop action plan for implementation of reforms • Reimbursable TA arrangement for implementation • Tunesia • Support in establishing DM function • Kenya • Support post-Needs Assessment

11. Summary • PDM is a small group of debt management practitioners providing advisory services to MICs and LICs • Typically on a cost recovery basis and as part of broader Bank engagements • Approach emphasizes practitioner to practitioner and peer to peer learning • Engagements are customized to client needs - substantive work in over 45 countries • Provides public goods, e.g. Guidelines for Public Debt Management and other publications • Resources include training and outreach, research and practitioners guides, diagnostics

12. Banking and Debt Management contacts Phillip Anderson Head, Public Debt Management +1 202-473-4328 prdanderson@worldbank.org Lars Jessen Lead Financial Officer +1 202-458-4945 ljessen@worldbank.org More information: treasury.worldbank.org