Improving Public Debt Management
In the OIC Member Countries
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B) Public Debt ManagementGovernance and Strategy Development
Legal frameworkIn Turkey “effective debt management has an important role for the continuity of economic
stability” (Undersecretariat of Treasury 2015, p.7). Article 12 of the Law No. 4749 on
regulating public finance and debt management defines the Debt and Risk Management
Committee as the institution in charge of public debt management, which takes all strategic
decision.
Managerial structure (including coordination with other policies)Whereas the Debt and Risk Management Committee (DRMC) provides the general strategic
benchmarks and implementation framework, the operationalization of these benchmarks is
carried out by the General Directorate of Public Finance and the General Directorate of Foreign
Economic Relations, which are both part of the Undersecretary of Treasury (see Figure 436).
The Undersecretariat of Treasury operates in close coordination and communication with the
Central Bank of Turkey and the MoF.
The General Directorate of Public Finance (DGPF) is responsible for domestic borrowing, cash
management, management of Treasury receivables, risk management, accounting and
statistics operations as well as activities regarding the compulsory savings account. Middle
office, back office and front office for domestic borrowing are under DGPF. The General
Directorate of Foreign Economic Relations is responsible for bond issuances in international
capital markets, project financing via external loans and budget financing with program loans
from international institutions. All strategic decisions on debt management are taken by the
DRMC, which is chaired by the Undersecretary (except for certain cases when the minister
chairs the committee). DRMC consists of deputies of Undersecretary and three Directors
General.
Figure 4-36: Turkey - Organization of Public Debt Management
Source: Undersecretariat of Treasury (2015, 2016a).