Improving Public Debt Management
In the OIC Member Countries
149
Figure 4-33: Lebanon – Public Debt Dynamics
Sources: WEO (2016), IMF (2015a), calculations by the Ifo Institute.
Debt management strategy (incl. risk management)The PDD has developed a mediumterm debt management strategy (MDTS) for the years
20142016, which is embedded in the macrofiscal framework of the government and updated
annually. While the main objective of the strategy is “to ensure that the government’s financing
needs and its payment obligations are met at all times, at the lowest possible cost over the
medium to long run and consistent with a prudent, acceptable degree of risk” (MoF 2014, p. 2),
the strategy also puts emphasis on the development of primary and secondary domestic debt
markets. Restrained domestic financing capacities have presented an obstacle for economic
development in Lebanon. For this purpose, the strategy stresses the importance of proactive
support of market development, for example through a transparent and predictable domestic
0 50 100 150 200
% of GDP
200620072008200920102011201220132014201520162017
Gross Net
Projections
Public Debt
0
25
50
75 100
% of total public debt
2006200720082009201020112012201320142015
Creditor Structure of Public Debt
Domestic External
-10 -5 0 5 10 15
% of GDP
200620072008200920102011201220132014201520162017
Net lending
Primary net lending
Net interest payments
Net Lending
0 20 40 60 80 100 % of ext. public debt
2006200720082009201020112012201320142015
Currency Structure of Ext. Public Debt
USD EUR GBP
CHF JPY Mult.
Other SDR