Overcoming obstacles to building public debt management capacity. The case of Moldova

Transcription

1 Overcming bstacles t building public debt management capacity The case f Mldva Elena Matveeva, Head f Public Debt Department Ministry f Finance Republic f Mldva

2 Key indicatrs Legal & Institutinal framewrk External technical assistance The way t debt management refrms, DeMPA The way t debt management refrms, MTDS Refrm Plan Implementatin f refrm plan Lessns learned

3 GDP grwth rate in 2011 was 6,4%, 2012 prjected at 3,0% Budget deficit in ,4% f GDP Public Debt/GDP is 29,2% Central Gvernment Debt/GDP in 2011 was 23,4% By residence f the creditr: External-69,6%;Dmestic- 30,4%; Debt Service/Budget Revenues 8,8% Debt Service/Budget Expenditures -8,4% External Central Gvernment Debt/Exprts 51,5% Debt Strategy starting 2011 Well perfrmed under PEFA 2011 review PFM refrms in implementatin Cuntry Plicy and Institutinal Assessment-3,8 (average IDA Brrwers 3,3) fr Debt Plicy and Management 4,0 (Y2011);

4 Law n Public Debt and State Guarantees and n-lending frm State Brrwings/ MF is respnsible fr mnitring and reprting f public debt MF is respnsible fr management f central gvernment debt, issues guarantees n behalf f the state and n-lending The respnsible institutin fr the management f debt within the Ministry f Finance is the Public Debt Department created in Octber 2001.

5 Currently, the DMO is structured accrding t prducts and nt cre functins Public Debt Department (18) External Financing and Debt Divisin (5) Dmestic Debt Divisin (5) Onlending divisin (5) Mnitring and Evaluatin Unit (2)

6 DMO Internal State Treasury (cash & debt management, prcessing f payment rders, disbursements f budget lans etc.); Budget Department (prpsals related t the budgeting f debt ceilings, debt service, financing surces f the budget deficit etc.); Subrdinated institutins f the MF (cntrl f crrectness f public debt reprting, maintenance f DMFAS). External Prime minister s ffice (identificatin f new financing surces,); Parliament (ratificatin f lan agreements); Line ministries/piu (frecast f lan disbursements, request fr disbursements, reprting f disbursements); Natinal Bank f Mldva (acting as fiscal agent f the state, the frecast f internatinal reserves related t debt service, reprting f public debt); Public institutins (lcal authrities, municipal and state cmpanies) reprting f public debt.

7 Prject supprt t public debt management , financed by SIDA DeMPA, 2008 (WB) MTDS missin, (WB&IMF) US Treasury, 2009 MTDS and DSA training jintly with Refrm plan missin, 2011 DO staff have participated in trainings, seminars rganized by IMF and WB

8 DeMPA findings & recmmendatins Overall scre is high managerial structure crdinatin with mnetary plicy brrwing plicies and prcedures fr dmestic debt recrds Legal framewrk Debt reprting Need imprvement Debt management strategy Operatinal risk management

9 Main bjective t prvide supprt t the gvernment in their nging effrts t develp a MTDS Recmmendatins Existing frmal DMS prvides limited guidance regarding the risk expsure f the debt Reestablishment the divisin respnsible fr develpment f MTDS and cst-risk analysis Descriptin f shck scenaris and alternative financing strategies

10 DeMPA and MTDS missins were the basis fr making the Refrm Plan.

11 17 actins Duratin actins t be implemented internally 7 actins using external assistance

12 I. Legal framewrk -Amend the law t include Debt management bjectives Requirement t develp debt management strategies with regular updates reprt t parliament and Gvernment - Develp regulatins fr lcal gvernment brrwing II. Organizatin f effective debt management Restructure the DO accrding t functins Hire r transfer within the DO ne additinal staff t ME Transfer legal adviser r hire yung law graduate Annual training plans Rtate staff within DO III. Debt Management Strategy and Risk Management Publish debt management strategy as stand alne dcument and update annually Develp framewrk t assess financing ptins

13 IV. Reprting Intrduce mnthly shrt reprts Review cntent f quarterly reprts and intrduce strategy fllw-up in the annual reprt V. Operatinal Risk Initiate internal prject t identify and develp plans fr managing peratinal risk Ensure there is a back-up staff fr all cre functins Intrduce a separate risk mnitring and cntrl functin in the DO VI. Debt Recrding Intrducing a unified debt recrding system VII. Dmestic Securities Market Develpment Analyze the ptins fr gradually extending maturities Prepare actin plan fr gvernment securities market develpment

14 In implementatin - 3 actins Implemented - 6 actins Delays - 3 actins (need external assistance)

15 Cuntry wnership and cmmitment t refrm Link t n-ging PFM refrm plan Experience f different DO Apprpriate legal supprt Infrmatin system Sufficient and well trained staff