Annex XII to OIC/COMCEC-FC/33-17/REP
92
Original: English
POLICY RECOMMENDATIONS OF THE 8TH MEETING OF THE
COMCEC FINANCIAL COOPERATION WORKING GROUP
The COMCEC Financial Cooperation Working Group (FCWG) held its 8th
Meeting on March 30th, 2017 in Ankara / Turkey with the theme of
“Improving Public Debt Management in the OIC Member Countries”. During
the Meeting, the participants discussed some crucial policy issues in light of the
main findings of the research report prepared specifically for the Meeting and
the responses of the Member Countries to the policy questions that were sent
by the CCO in advance of the Meeting. Accordingly, the working group has
come up with the policy advices below.
Policy Advice 1: Strengthening/Setting up an independent Public Debt
Management Unit with well-defined functions and a dedicated debt
management strategy
Rationale:
In several OIC member countries the delineation of competences between
different institutions involved in public debt management remains vague.
Especially the partial lack of centralization at a dedicated Public Debt
Management Unit (DMU) might prove to be challenging for further
management improvements. Therefore, all OIC member countries are
encouraged to either set up a new independent DMU or institutionally
strengthen an existing one, possibly located at the Ministry of Finance or the
Central Bank. Moreover, the development of a formal debt management
strategy, including quantitative strategic targets, is recommended. The DeMPA
Performance Indicators of the World Bank can serve as an initial reference
point. In order to support the transition process, OIC member countries that
have already professionalized public debt management practices may advise
partner countries in establishing such institutional frameworks. This could
include policy recommendations with regards to specific areas of debt
management, including but not limited to a long-term strategy development,
risk management, debt monitoring or institutional coordination. Besides
exemplary institutional settings and public debt management documents, the
exchange about challenging experiences and the respective ‘lessons learned’
might prove to be especially helpful during the process.