Lilia Razlog October 2017 PEMPAL Treasury COP Chisinau Moldova The World Bank DeMPA methodology The DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions ID: 1029003
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1. DEMPA evaluations: Coordination of debt and cash managementLilia RazlogOctober, 2017PEMPAL Treasury COPChisinau, MoldovaThe World Bank
2. DeMPA methodologyThe DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions.
3. Results-to-Date112 DeMPAs conducted between 2007-16:78 different countries across 6 regionsIn ECA, DeMPAs were conducted in:AlbaniaArmeniaBelarusBosnia and HerzegovinaGeorgiaKazakhstanKosovo Kyrgyz Republic Republic of Moldova Tajikistan 3
4. Main elements of the 2015 DeMPA revision
5. DeMPA methodology 2015The 2009 Tool and Guide for DeMPA are combined into one unified 2015 DeMPA methodologyIn the revised DeMPA, the guidance for evaluation of each dimension of government debt management practices (DPI) consists of:Rationale and background (by dimension)Areas to be assessedScoring criteriaSupporting documentationIndicative questions to ask.
6. Scoring MethodologyScoring: Quantifiable Scores (from A to D)Meet minimum requirement = Score CAbsence of minimum = Score DSound practice = Score A (B intermediate for more granularity)Not applicable (N/A) – if the activity is not undertaken, e.g., loan guarantee is not issued in last five yearsNot rated (N/R) – if impossible to assess due to insufficient information
7. Structure of the 2015 DeMPA2009 DeMPA2015 DeMPASix core areasFive core areas15 Debt Management Indicators (DPIs)14 Debt Management Indicators (DPIs)35 dimensions33 dimensionsDPI 15 and its first two dimensions (DPI15-1 and 15-2) on statutory and contractual reporting are discontinued The third dimension (DPI15-3) on statistics bulletin is moved to DPI4 – Reporting and Evaluation. Both dimensions of revised DPI4 are related to the transparency and accountability of government debt management duties.
8. Structure of DeMPADeMPA 2009DeMPA 2015Governance and Strategy Development Governance and Strategy Development DPI-1Legal Framework (1dimension)DPI-1Legal Framework (1 dimension)DPI-2Managerial Structure (2 dimensions)DPI-2Managerial Structure (2 dimensions)DPI-3Debt Management Strategy (2 dimensions)DPI-3Debt Management Strategy (2 dimensions)DPI-4Evaluation of Debt Management Operations (1 dimension)DPI-4Reporting and Evaluation (2 dimensions)DPI-5Audit (2 dimensions)DPI-5Audit (2 dimensions)Coordination with Macroeconomic PoliciesCoordination with Macroeconomic PoliciesDPI-6Coordination with Fiscal Policy (2 dimensions)DPI-6Coordination with Fiscal Policy (2 dimensions)DPI-7Coordination with Monetary Policy (3 dimensions)DPI-7Coordination with Monetary Policy (3 dimensions)Borrowing and Related Financing Activities Borrowing and Related Financing Activities DPI-8Domestic Market Borrowing (2 dimensions)DPI-8Domestic Borrowing (2 dimensions)DPI-9External Borrowing (3 dimensions)DPI-9External Borrowing (3 dimensions)DPI-10Loan Guarantees, On-Lending, and Derivatives (3 dimensions)DPI-10Loan Guarantees, On-lending and Derivatives (3 dimensions)
9. Structure of DeMPADeMPA 2009DeMPA 2015Cash Flow Forecasting and Cash Balance Management Cash Flow Forecasting and Cash Balance Management DPI-11Cash Flow Forecasting and Cash Balance Management (2 dimensions)DPI-11Cash Flow Forecasting and Cash Balance Management (2 dimensions)Operational Risk ManagementDebt Recording and Operational Risk ManagementDPI-12Debt Administration and Data Security (4 dimensions)DPI-12Debt Administration and Data Security (4 dimensions)DPI13Segregation of Duties, Staff Capacity, and Business Continuity (3 dimensions)DPI-13Segregation of Duties, Staff Capacity, and Business Continuity (3 dimensions)DPI14Debt Records (2 dimensions)Debt Recording and ReportingDPI-14Debt Records (2 dimensions)DPI-15Debt Reporting (3 dimensions)discontinued
10. Debt and cash management - DeMPA DPI 11Two core areas of assessment:Cash flow forecasting, commonly the responsibility of the Treasury unit Effectiveness of forecasting the aggregate level of cash balances in government bank accounts2. Cash balance management, commonly the responsibility of the Debt Management unit or the Treasury unit Decision of an appropriate cash balance (liquidity buffer) and effectiveness of managing this cash balance in government bank accounts (including the integration with any domestic debt borrowing program, if required)
11. Performance-tracking reveals remaining challenges11Breakdown of scores C and higher by Debt Management categories(using the results of the latest DeMPA report)
12. Results to-date in ECA
13. Thank you 13Web link: http://worldbank.org/debtwww.DMFacility.org