IMF/WB issue revised Guidelines for PDM

The IMF and World Bank have issued a revised version of the document “Guidelines for Public Debt Management” (GPDM).  The GPDM was originally issued in March 2001 and an amended version published in December 2003, together with a set of “Accompanying Documents and Selected Case Studies”. This new revision therefore occurs after a decade.

According to the Preface of the 2014 edition:

The main revisions reflect (i) greater clarity on the roles and accountabilities of debt managers and their responsibility for providing pertinent information to fiscal authorities on the amount of debt that can realistically be absorbed by the market; (ii) enhanced communication with investors,  which was considered essential especially during periods of crisis, with pertinent information on debt composition and related risk indicators being periodically provided to minimize uncertainty; (iii) the use of collective action clauses (CACs) in bond contracts for the efficient resolution of sovereign debt restructurings; (iv) a more detailed consideration of risk mitigation strategies, particularly liquidity and refinancing risk, and of contingency plans, including the building of cash buffers; (v) greater emphasis on the use of stress testing, the importance of managing counterparty risk when derivatives are used, and the need to better manage and monitor the risks arising from contingent liabilities; and (vi) the need to enhance the liquidity of the domestic bond market, while impediments that inhibit the development of domestic government bond markets, such as limited diversification of the investor base, should be promptly identified and addressed, as well as the need to consider flexibility in issuance programs, especially in times of crisis.

The new version of the Guidelines can be downloaded from the IMF web site here or from our Resources Page > Library