Improving Public Debt Management
In the OIC Member Countries
178
Area vulnerable to
obstacles Challenges Examples of
countries facing risks
- Accountability may be ambiguous
 DMOs may be dependent on political constraints
Lacking formal debt management strategy: MTDS and
numerical strategic targets are not yet implemented.
Risks: Difficulties in attracting foreign investors
(3) Domestic public
debt markets Dependency on external borrowing caused by
underdeveloped domestic public debt market
Problems:
 Insufficient market infrastructure, e.g. lack of
informational transparency
 Immature secondary markets
 Limited market size
 Small investor base
Risks:
 Limited diversification of investor base which
increases idiosyncratic risks
 Increased dependency on global market conditions
affected by macroeconomic trends which are less
related to current countryspecific conditions
Afghanistan, Algeria,
Azerbaijan, Burkina
Faso, Comoros,
Djibouti, Gabon,
Guyana, Kyrgyz
Republic, Mali,
Mauretania,
Mozambique, Niger,
Senegal, Sierra Leone,
Sudan, Tajikistan,
Uzbekistan
(4) Debt structure Short average maturity of public debt, especially
concerning debt held by the private sector
Risks:
 Refinancing risk
 Potentially harms further development of the
domestic debt market
Domestic banking sector holds great share of total
public debt
Risks:
 Crowdingout of bank loans to the private sector
Albania, Bahrain,
Egypt, Gambia, Iran,
Lebanon, Kazakhstan,
Nigeria, Qatar, Saudi
Arabia, Syria, Togo,
Yemen
Specific Recommendations
The following main areas of improvement of public debt management in the OIC member
countries can be identified.
(1) Institutional framework of public debt managementIn several OIC member countries the delineation of competences between different
institutions involved in public debt management remains vague. Especially the partial lack of
competence centralization at a DMO might prove to be challenging for further improving
public debt management functions. Moreover, 38% of OIC member countries have not yet
developed a specified MTDS according to international standards. Among the OIC member