Improving Public Debt Management

In the OIC Member Countries

B) Public Debt Management

Governance and Strategy Development

Legal framework

Public debt management in Togo is regulated in national and regional laws and decrees.

Effectively, the President has delegated the primary legislation power to negotiate and sign

international debt contracts to the Minister of Finance. Secondary legislation is conducted

according to decree No. 2008050 of May 7, 2008, entitling the Ministry of Finance to negotiate

bilateral and international contracts with respect to finance and economy. Borrowing has to be

approved by the Parliament (Art. 9). These rules are complemented by regulation no.

09/2007/CM/UEMOU of June, 22, 2007, which describes a set of debt management

instruments and frameworks, including disclosure and coordination and control of policies.

The creation, organization and attributes of the

Comité National de la Dette Publique

(CNDP)

are recorded in decree No 2008067/PR of June 21, 2008. The CNDP is supposed to make

statements about government bonds and securities. Enactment No 338/MEF/DGTCP/CAB says

that all financial offers and demand have to be approved by the CNDP. The

Direction de la Dette

Publique

(DDP) is responsible for the emission, management, as well as monitoring of

guarantees.

Managerial structure (incl. coordination with other policies)

After the reorganization of the Ministry of Economy and Finance (MoEF) in 2013 and the

reform of public finance management (MoEF 2016), the most important institution related to

debt management is the DDP, which is located at the Treasury Department. The DDP actively

manages the debt portfolio, provides legal advice on public funding agreements and is

responsible for recording and maintaining all data related to public debt. Furthermore, it

issues new debt, recovers matured debt and monitors the debt service (PEFA 2016). The DDP

also examines together with the CNDP all internal and external finance requests that concern

the resources of the state. The CNDP was created in 2008 in order to develop, coordinate and

monitor the implementation of the national public debt policy and management. Furthermore,

the CNDP is responsible for ensuring the coherence of that policy with development goals and

the financial capacity of the state (PEFA 2016).

The Central Bank of the States of West Africa (BCEAO), which serves as the central bank for the

member countries of the West African Economic and Monetary Union (UEMOA), delivers the

material organization of auctions on behalf of the MoEF (AFMI 2016).

Debt reporting

The CNDP has published the “Analyse de la Viabilite de la Dette du Togo” including shortand

longterm debt developments projections based on different macroeconomic scenarios (CNDP

2015). The debt management strategy document (

Rapport de Stratégie ’Endettement

)

includes statistics of debt developments and debt structures. This document is, however, not

published online and only available in paper form.

Debt management strategy (incl. risk management)

The MoEF considers the reduction and restructuring of public debt as a key priority on their

agenda (MoEF 2014). The DDP prepares an annual debt management strategy, which has to be

supported by the CNDP and which includes domestic and external public debt (PEFA 2016).