An agreement for the second phase of the World Bank's Debt Management Facility (DMF II) was signed between the bank and UNCTAD 's Debt Management and Financial Analysis (DMFAS) Programme in August.
UNCTAD, through its Debt Management and Financial Analysis (DMFAS) Programme, has been an implementing partner of the Debt Management Facility (DMF) multi-donor trust fund since its inception in 2009 and signed, in August, a new grant agreement with the World Bank for the implementation of the Debt Management Facility Phase II (DMF II).
DMF II was launched earlier in 2014, building on previous successes in debt-management advisory work.
The DMF has the specific objective of strengthening debt management capacity and institutions to enable governments to finance their operations prudently, with appropriate cost-risks mix to contribute to macroeconomic stability and ensure sustainable debt levels over the long term.
The new grant agreement will allow the DMFAS Programme to support DMF II activities including:
- Debt Management Performance Assessment (DeMPA) missions
- Debt Management Reform Plans missions
- Medium-Term Debt Management Strategy (MTDS) Development
- Application of the Joint Bank-International Monetary Fund Debt Sustainability Framework (DSF)
- Domestic Debt Market Development
- Subnational Debt Management
- The Debt Managers' Network program (DMN)
- Knowledge products
- Organization of Regional Training Events
Having contributed to the design of the DMF during its conception, the DMFAS Programme officially became a partner in 2009 after the signing of the first grant agreement with the World Bank.
The downstream activities of the DMFAS Programme and upstream work of the World Bank complement each other well, and there is a clear interdependency between the activities of DMF and of the DMFAS Programme.
The DMFAS Programme's participation in these DMF activities has received positive feedback from DMF stakeholders as well as the country beneficiaries. Under the first grant agreement covering Phase I of the DMFAS, UNCTAD participated in 45 DMF activities, including 24 Debt Management Performance Assessments, 16 Medium-Term Debt Management Strategies, five Reform Plan missions and organized one regional Medium-Term Debt Management Strategy workshop.