Institutional Arrangements for Public Debt Management

This paper analyzes institutional arrangements for public debt management by reviewing the experience of OECD countries during the late 1980s and 1990s. It discusses principal-agent issues arising from the delegation of authority from the Minister of Finance to the debt management office and describes how countries have designed governance structures and control and monitoring mechanisms to deal with these issues. The paper also discusses what lessons emerging market countries and transition countries can draw from the experience of advanced OECD countries. The OECD experience clearly indicates that-regardless of whether the debt management office is located inside or outside the Ministry of Finance-four issues are of vital importance: 1) Giving priority to strategic public policy objectives rather than tactical trading objectives. 2) Strengthening the institutional capacity to deal with financial portfolio management and with the public policy aspects of debt management. 3) Modernizing debt management. 4) Creating mechanisms to ensure successful delegation and accountability to the Ministry of Finance and Parliament.

Bibliographic Details

Main Authors:	Currie, Elizabeth, Dethier, Jean-Jacques, Togo, Eriko
Language:	English en_US
Published:	World Bank, Washington, DC 2003-04
Subjects:	PUBLIC DEBTS, INDUSTRIALIZED SOCIETIES, PUBLIC FINANCE, GOVERNANCE CAPACITY, MONITORING CRITERIA, TRANSITION ECONOMIES, MARKET ECONOMY, PUBLIC POLICY EVALUATION, TRADING ARRANGEMENTS, INSTITUTIONAL CAPACITY, FINANCIAL MANAGEMENT, DEBT MANAGEMENT ACCOUNTABILITY, ALM, AUTONOMY, BALANCE SHEET, BANK OF ENGLAND, BONDS, BORROWING, BUDGET DEFICITS, CAPITAL MARKETS, CASH MANAGEMENT, CENTRAL BANKS, CIVIL SERVICE, CORPORATE GOVERNANCE, COUPON RATE, CURRENCY RISK, DANMARKS NATIONALBANK, DEBT CRISES, DEBT INSTRUMENTS, DEBT ISSUANCE, DEBT LEVEL, DEBT MARKETS, DEBT REFINANCING, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEBT SERVICING, DEBT SERVICING COSTS, DEBTS, DOMESTIC BORROWING, DOMESTIC DEBT, ECONOMIC CONDITIONS, EMERGING MARKET ECONOMIES, EMPLOYMENT, EUROPEAN CENTRAL BANK, EXTERNAL DEBT, FINANCIAL MARKETS, FINANCIAL RISK, FINANCIAL SERVICES, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FISCAL RESPONSIBILITY, FOREIGN BORROWING, FOREIGN DEBT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, GOVERNMENT DEBT, GOVERNMENT FINANCE, GOVERNMENT SECURITIES, INFLATION, INSURANCE, INTEREST RATES, LEGISLATION, MANDATES, MATURITIES, NATIONAL DEBT, PRICE STABILITY, PRIVATE SECTOR, PUBLIC DEBT, PUBLIC DEBT MANAGEMENT, PUBLIC EXPENDITURES, PUBLIC POLICY, PUBLIC SECTOR, REFINANCE, REORGANIZATION, RISK MANAGEMENT, SAVINGS, SOVEREIGN DEBT, TRANSPARENCY, TREASURY, DEBT MANAGEMENT, ACCOUNTABILITY,
Online Access:	http://documents.worldbank.org/curated/en/2003/04/2329619/institutional-arrangements-public-debt-management https://hdl.handle.net/10986/18226
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