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Programs for Low-Income Countries

 

 

 

 

 

 

 

 

Many low-income countries (LICs) continue to face significant policy, institutional, and operational challenges in managing public debt.  The international community has committed considerable resources to LICs through official development assistance and debt relief, yet, their risks of debt distress remain high due to their economic fragility, the possibility that their newly created borrowing space will be used for unsustainable commercial borrowing, and their generally weak capacity in debt management.

The Treasury debt management team has collaborated with the Poverty Reduction and Economic Management (PREM) Vice Presidency of the World Bank to deepen support for LICs. Insights from advisory engagements in both middle income countries and LICs have been integrated in the development of these programs.
Debt Management Performance Assessment (DeMPA) DeMPA is a methodology for assessing the full range of government debt management functions through a comprehensive set of indicators. It highlights strengths and weaknesses in government debt management practices and facilitates the design of plans to build and augment capacity and institutions tailored to specific needs of a country. DeMPA includes a tool that gives an overview of the indicators and scoring methodology and a guide that provides tips for conducting the assessment.
Medium-Term Debt Management Strategy (MTDS)

MTDS is a comprehensive framework designed to help countries develop an effective debt management strategy for the medium term that explicitly recognizes the relative costs and risks involved. The MTDS includes a guidance note on the process of designing and implementing a debt management strategy in a low-income country context, a template for strategy documentation, and a quantitative cost-risk analytical tool with an associated handbook that provides a key input into the debt management startegy decision-making process.