July 2020
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Interview with David Espinoza,
Former Manager of International Operations Management at the Central Bank of Bolivia
Just before the outbreak of the COVID-19 crisis and confinement throughout the world, the DMFAS Programme concluded a technical assistance project with the Central Bank of Bolivia (CBB) with the advanced functional training and the final evaluation mission.
The overall objective of this project was to strengthen the CBB’s capacity for debt data recording, reporting and monitoring through the upgrade of DMFAS version and capacity-building activities, hence contributing to improvements in debt data transparency.
In March 2020, the mission met with Mr. David Espinoza, Manager of International Operations Management (IOM), who recently moved to new management responsibilities in the CBB outside IOM.
DMFAS: What is your professional background?
David Espinoza: I am an economist with a Master's degree in finance, and I have been working at the IOM at the CBB since 1987 (external debt recording and management). I became a manager in 1997.
DMFAS: What is your experience with DMFAS?
David Espinoza: Since the beginning of the collaboration with UNCTAD in the 1990s, the CBB has received very good support from UNCTAD, both at the IT and operational levels. The DMFAS Programme can be relied upon to respond to any problems.
DMFAS: What have been and are the advantages offered by the DMFAS system?
David Espinoza: Thanks to DMFAS, the CBB has information on Bolivia's debt since 1996, meaning that it has accumulated 24 years of detailed historical data that are very useful for the country. The system has made it possible to generate official statistics in a reliable manner. From the early years up to 2005, DMFAS played a fundamental role in compiling the information needed for all debt relief negotiations. Today, DMFAS allows us to initiate the key process of monitoring debt service payments. DMFAS is also used to prepare reports to international organizations (IMF, WB, etc.) and to reconcile data on a quarterly basis with Bolivian public entities receiving external credits.
It should be noted that ten years ago the CBB developed two interfaces. One between DMFAS and its accounting system and the other with the SWIFT system, which in both cases considerably reduced operational risk. These interfaces, although stable, need to evolve to take into account the ongoing modernization of debt management practices (e.g. creditor calculation methods) and of course to adapt to new versions of the DMFAS software.
DMFAS: What do you think of UNCTAD's Debt Management Conference?
David Espinoza: I have attended the Conference 4 or 5 times. For me, it is very relevant for debt managers and it is also an opportunity to exchange between different countries. In fact, the CBB was able to learn from other countries’ experiences and apply them in Bolivia.
DMFAS: How do you see the future of debt management in Bolivia?
David Espinoza: The CBB, by Law, is the entity in charge of external debt, and this role will be maintained because the CBB is the most appropriate for preserving institutional memory and has experience in managing and controlling payments, among other things. With regard to debt sustainability, since the country emerged from the HIPC initiative 10-15 years ago, Bolivia has been classified as a middle-income country. So it is unlikely that in the future Bolivia will be able to benefit from new debt relief or preferential conditions. However, debt sustainability analyses carried out by the CBB show that Bolivia's debt remains sustainable.
DMFAS: Anything else?
David Espinoza: For me, the DMFAS covers everything that the CBB needs, we are satisfied, and we want to maintain the excellent relationship that we have built with the DMFAS team.
We thank Mr. Espinoza for his support during these years and we wish him all the best in his new responsibilities.