Improving Public Debt Management
In the OIC Member Countries
10
 Establishing reporting procedures to ensure that the government’s debt managers are
accountable for their assigned debt management responsibilities and assignments.
The main purpose of this study is to examine public debt management practices in the member
countries of the Organization of Islamic Cooperation (OIC) and to propose recommendations
for improving public debt management in the OIC member countries. The study explicitly
considers the institutional framework of public debt management and the debt structure.
Other important issues regarding the sustainability of public debt, such as the levels of public
budget deficits and debt, and whether debt is issued for financing investment or consumption
are beyond the scope of this study. The decision on the amount to be borrowed is made by the
government before the process of public debt management sets in.
1.2 Performance Indicators and Best Practices The World Bank (2015) has developed the Debt Management Performance Assessment
(DeMPA) methodology to assist countries in improving their public debt management. The
DeMPA performance indicators cover five dimensions of public debt management, namely: (1)
governance and strategy development, (2) coordination with macroeconomic policies, (3)
borrowing and related financial activities, (4) cash flow forecasting and cash balance
management, and (5) debt recording and operational risk management (see Table 11 for
further details).
Table 1-1: World Bank DeMPA Performance Indicators
Performance Indicator Description
1. Governance and Strategy DevelopmentLegal Framework The existence, coverage and content of the legal framework on
authorization to borrow (in both domestic and foreign markets),
undertake debtrelated transactions (e.g. debt exchanges as well as
currency and interest swaps) and issue loan guarantees
Managerial Structure (1) Managerial structure for central government borrowing and debtrelated transactions
(2) Managerial structure for preparation and issuance of central
government loan guarantees
Debt Management
Strategy (1) Quality of the DeM strategy document (guidelines and target
ranges of indicators for interest rate, refinancing, and foreign currency
risks) (2) Decision making process and publication of the DeM strategy
Debt Reporting and
Evaluation (1) Publication of a statistical bulletin on debt, loan guarantees and
debtrelated operations
(2) Reporting to parliament or congress
Audit (1) Frequency and comprehensiveness of financial, compliance, and
performance audits (of the effectiveness and efficiency of government
DeM operations, including the internal control system), and
publication of external audit reports
(2) Degree of commitment to address the outcomes from the audits