1. Debt Management Performance Assessment Tool (DeMPA)
Economic Policy and Debt Department
Debt Management Performance Assessment Tool (DeMPA)
Multilateral Development Banks Meeting Washington , DC
10 July 2008

2. Debt Management Performance Indicators (DeMPA)
What is DeMPA?
DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management (DeM) functions
It may be applied in all developing countries
It is based on the PEFA methodology. Drill down.

3. Objectives Assess debt management performance and monitor it over time
Debt Management Performance Indicators (DeMPA)
Objectives
Assess debt management performance and monitor it over time
Enable design of actionable reform programs
Enhance donor harmonization based on common understanding of priorities

4. Debt Management Performance Indicators (DeMPA)
DeMPA toolkit
15 Debt Management Performance Indicators (DPIs) and 35 dimensions
Covering 6 core debt management functions
Neutral regarding institutional arrangements
Indicators complemented by Guide
background information and rationale on each indicator
a list of supporting documentation
indicative questions
Builds on Public Expenditures and Financial Accountability (PEFA) indicators
Based on “sound practice” – not “best” practice
Neutral regarding institutional arrangements for debt management in country

5. Debt Management Performance Indicators (DeMPA)

6. Scoring method and coverage
Debt Management Performance Indicators (DeMPA)
Scoring method and coverage
Scoring methodology - quantifiable scores (A to D)
Meet minimum requirement = Score C
Absence of minimum= Score D
Sound practice = Score A (B intermediate for more granularity)
Not rated – if process/system does not exist
Coverage: Central Government debt management and connected activities
Borrowing and use of derivatives
Issue of loan guarantees
On-lending
Cash flow forecasting and cash balance management
Exception: DSA and debt reporting include total
non-financial public sector debt and loan
guarantees

7. Implementation of the DeMPA tool
Debt Management Performance Indicators (DeMPA)
Implementation of the DeMPA tool
Performance Report (about 20 pages): evaluates debt management performance based on indicators
Assessments developed and finalized with country authorities
Highlight strengths and areas for improving performance in debt management
No recommendations
No conditionality
Report released by country authorities
Who is going to implement it? Who will use it? Explain how it will work in the Bank. This is a country team led initiative. Country team may contract out or get us to do it. So, it may well be that many in this room will be implementing this tool.

8. Debt Management Performance Indicators (DeMPA)

9. X indicates deficiency √ indicates meeting with requirements
Debt Management Performance Indicators (DeMPA)
Preliminary Results
Picks up priority areas of reform and monitors progress
X indicates deficiency √ indicates meeting with requirements

10. Debt Management Performance Indicators (DeMPA)
Preliminary Results

11. Debt Management Performance Indicators (DeMPA)
Preliminary Results

12. Debt Management Performance Indicators (DeMPA)
Preliminary Results

13. Debt Management Performance Indicators (DeMPA)
Preliminary Results

14. Key lessons from implementation
Debt Management Performance Indicators (DeMPA)
Key lessons from implementation
Avoid “indicator fatigue” – try to coordinate with other indicator assessments, e.g. PEFA, FSAP
Assessment process is a dialogue not an exam
Use quantitative and documentary evidence
Interact with relevant in-country DeM stakeholders: various government agencies – not just debt manager, market players, donor community, TA providers, etc.

15. Next steps Continue to implement DeMPA where there is demand
Debt Management Performance Indicators (DeMPA)
Next steps
Continue to implement DeMPA where there is demand
Enhance coordination with TA providers
Report on program to Board early 2009
Regional seminars, workshops and training
Geneva, DMFAS group - September 3-4
Abuja, WAIFEM - December 3-4
Nairobi, MEFMI - December 8-9
Seek donor support to scale-up the work program
Follow-up essential

16. Debt Management Facility for Low Income Countries (DeMFLIC)
Debt Management Performance Indicators (DeMPA)
Debt Management Facility for Low Income Countries (DeMFLIC)
Facility would be a multi-donor trust fund for an initial period of four years
Funds used to scale up DeMPA and MTDS work programs, help design reform programs, enhance coordination
Sufficient donor support to formally announce in October 2008

17. Strengthening Debt Management Capacity
Debt Management Performance Indicators (DeMPA)
Strengthening Debt Management Capacity
MTDS
TA & CB Programs
DeMPA

18. Thank You Contact: Francis Rowe
Debt Management Performance Indicators (DeMPA)
Thank You
Contact: Francis Rowe