CASH AND DEBT MANAGEMENT: INTERACTION, COORDINATION AND INTEGRATION Group 1 CASH AND DEBT MANAGEMENT: INTERACTION, COORDINATION AND INTEGRATION Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Ukraine Chisinau 12 October 2017

1. Does the cash management function interact with the financial market? Directly Indirectly through the Central Bank Indirectly through Debt Management Unit Not at all Azerbaijan + (deposits) + Belarus Kazakhstan Kyrgyzstan Moldova Russia Tajikistan Ukraine

2. Are T-bills (other instruments) used for cash smoothing in-year as well as deficit financing? Yes (most of the time) Only occasionally No Azerbaijan + Belarus Kazakhstan + (only for deficit financing) Kyrgyzstan Moldova Russia Tajikistan Ukraine

Informal (bilateral contact between officials) 3. Are there coordination structures in place between the debt and cash management functions? Formal (a formally-established committee) Informal (bilateral contact between officials) Do they include the Central Bank? Azerbaijan + (Working Group under the Financial Market Supervisory Authority) + Belarus Kazakhstan Kyrgyzstan Moldova Russia + (Not very regularly) Tajikistan Ukraine +*

4. Are the debt and cash managers able to share resources? Systems Skills Other Yes (e.g. integrated database of information about short-term T-bills, bonds and other debt instruments) No (e.g. several systems, different interfaces) Yes (e.g. financial market and bond analysis expertise concentrated in one unit) No (skills spread across more than one unit) Azerbaijan + Belarus Kazakhstan Kyrgyzstan Moldova Russia Tajikistan Ukraine

Existing challenges and ways to overcome them Lack of good forecasts Insufficient coordination within the Ministry Inadequately developed money market Problems in interacting with CB, policy differences A constraining legislative or regulatory framework The organizational arrangements Insufficient commitment and understanding from top management Resource constraints (separate information systems, insufficient human resources and the problem of retaining qualified staff) T