Improving Public Debt Management
In the OIC Member Countries
183
Table 52 summarizes the policy recommendations.
Table 5-2: Summary of Policy Recommendations
Area of improvement
of public debt
management
Policy recommendation Examples of
countries concerned (1) Institutional
framework
Indicators:
 No centralized debt
management unit
 No formal debt
management strategy
 Low transparency
Strengthen the institutional framework of public
debt management.
Measures:
 Creating centralized DMOs
 Central bank independency
 Developing MTDSs including (numerical)
strategic targets
 Improving public disclosure onDebt data and debt reports
Information on issuance procedures
Debt management strategy
 Workshops within COMCEC might be useful to
bring OIC member countries together for
developing solutions of public debt management
problems according to their diverse experiences.
Azerbaijan, Bahrain,
Chad, Kazakhstan,
Malaysia, Oman, Qatar,
Saudi Arabia, United
Arab Emirates
(2) Strong reliance on
external borrowing/
underdeveloped domestic
debt markets
Indicator:
 High share of external
debt in total debt
Develop the domestic debt market.
Measures:
 Improving legal and regulatory frameworks
 Establishing a reliable public debt management
strategy
 Improving the dissemination of information on
debt operations
 Adopting transparency in primary auctions and
developing secondary markets
 Converting foreign grants into longterm
domestic currency bonds
 Information exchange within COMCEC on
problems in the domestic debt market.
Afghanistan, Algeria,
Azerbaijan, Burkina
Faso, Comoros,
Djibouti, Gabon,
Guyana, Kyrgyz
Republic, Mali,
Mauretania,
Mozambique, Niger,
Senegal, Sierra Leone,
Sudan, Tajikistan,
Uzbekistan,
(3) Strong reliance on the
domestic banking sector/
risk of crowdingout of
private credit
Indicator:
 High share of domestic
debt in total debt
Broaden and diversify the creditor base.
Measures:
 Granting pension funds, insurance companies,
retail investors and foreign investors access to
the domestic debt market
 Attracting foreign investors by issuing e.g.
Eurobonds and sukuk
 Balance between domestic and foreign borrowing
 Fruther development of the sukuk bond market as
well as additio al consideration of the financial
debt structure
 Information exchange within COMCEC on the
issuance of different types of bonds such as
Eurobonds and sukuk
Bahrain, Egypt,
Gambia, Iran,
Kazakhstan, Lebanon,
Nigeria, Qatar, Saudi
Arabia, Syria, Yemen