Each public debt management advisory engagement is customized based on a country’s needs. Public debt management advisory services usually begin with a general needs assessment, and can lead to design and implementation of a reform plan; alternatively, some clients request advisory services in one specific area of public debt management.
Asset and liability management advisory services, which tend to be targeted towards state-owned entities and public financial intermediaries, will typically require a needs assessment to better understand the nature of the risks to be managed, and can lead to capacity building services on execution of financial transactions designed to manage the risk.
The Government Debt and Risk Management (GDRM) Program provides assistance to middle-income countries to improve macroeconomic and fiscal management by reducing vulnerability to financial and other shocks.
Governments and subnational entities are eligible to enter into public debt management advisory services engagements with the World Bank Treasury.
The Debt Management Performance Assessment (DeMPA) tool and Medium-Term Debt Management Strategies (MTDS) tool are debt management activities funded by the Debt Management Facility (DMF), a multi-donor trust fund established to help developing countries strengthen their debt management capacity.
DeMPA evaluates strengths and weaknesses in public debt management, through a comprehensive set of performance indicators covering six core areas of public debt management. MTDS provides a framework for formulating and implementing a debt management strategy for the medium term. It is primarily focused on determining the appropriate composition of the debt portfolio, taking into account macroeconomic indicators and the market environment. These tools are targeted at low-income countries in all regions; both tools can be applied in the same country and do not have to follow a particular order.
Capacity building services and the World Bank Treasury’s program of conferences and workshops are provided by a team of experts in the area of public debt management. These experts have the hands-on experience needed to perform needs assessments, help design, and in some cases assist in implementing reform plans. This team also partners with other units in the World Bank with expertise in specific areas, such as debt management in low-income countries and domestic debt market development, and can also contract external consultants.
For public debt management, the needs assessment is performed free of charge. Additional public debt management services are provided on a cost-recovery basis through a straight hourly or fixed fee, plus a fee to cover travel-related expenses. Clients can pay these fees out of their regular organizational budgets or use resources provided by donors.
Clients can access any of the advisory services that the World Bank Treasury offers simply by contacting the relevant team. For public debt management, please contact FAB@worldbank.org
RAMP engagements are designed to help our official sector partners develop world-class asset management operations by building in-house capacity and employing financial service providers.
The World Bank Treasury has a team of experienced central bankers and investment professionals who lead client engagements and are accountable for the success of the collaboration. The engagement manager is responsible for collaborating with the client on the project plan and putting together the resources to provide conceptual, technical and systems support. A dedicated team of practitioners from across Treasury’s investment management business provides expert know-how and training in each of the functional areas from portfolio management to accounting. Treasury has contracted with professional finance institutes to provide general education in finance, portfolio management and specific asset classes.
The first step in joining RAMP is to organize an onsite peer review, which is a standalone service offered on a one-time, no-cost basis for any member country institution. The peer review is a confidential review of the organization’s management objectives with recommendations for strengthening the governance structure, investment management platform, and resources. Following such a review, an institution may request to join RAMP, but there is no obligation to do so.
Treasury has been providing needs assessments or "peer reviews" for member countries for over 20 years. This exercise is useful for strategic planning and creating a framework of objectives that can help guide the services to be received from RAMP.
The World Bank is a shareholder cooperative and any official institution of a member government can request to join RAMP. As Treasury seeks to balance its client advisory services with its fiduciary responsibilities as asset manager for multiple clients, we are sometimes forced to limit the number of new countries that the program can accept at a given time.
Clients span central banks, sovereign wealth funds, national pension funds and supranational organizations. As of June 30, 2016, Treasury was working with 60 clients of which 85% were central banks. RAMP has current engagements in most regions as can be seen in the chart below.