1. DEMPA evaluations: Coordination of debt and cash management
The World Bank
DEMPA evaluations: Coordination of debt and cash management
Lilia Razlog
October, 2017
PEMPAL Treasury COP
Chisinau, Moldova

2. DeMPA methodology
The DeMPA is a methodology for assessing public debt management performance through a comprehensive set of indicators spanning the full range of government debt management functions.

3. Results-to-Date 112 DeMPAs conducted between 2007-16:
78 different countries across
6 regions
In ECA, DeMPAs were conducted in:
Albania
Armenia
Belarus
Bosnia and Herzegovina
Georgia
Kazakhstan
Kosovo
Kyrgyz Republic
Republic of Moldova
Tajikistan

4. Main elements of the 2015 DeMPA revision

5. DeMPA methodology 2015
The 2009 Tool and Guide for DeMPA are combined into one unified 2015 DeMPA methodology
In the revised DeMPA, the guidance for evaluation of each dimension of government debt management practices (DPI) consists of:
Rationale and background (by dimension)
Areas to be assessed
Scoring criteria
Supporting documentation
Indicative questions to ask.

6. Scoring Methodology Scoring: Quantifiable Scores (from A to D)
Meet minimum requirement = Score C
Absence of minimum = Score D
Sound practice = Score A (B intermediate for more granularity)
Not applicable (N/A) – if the activity is not undertaken, e.g., loan guarantee is not issued in last five years
Not rated (N/R) – if impossible to assess due to insufficient information

7. Structure of the 2015 DeMPA 2009 DeMPA 2015 DeMPA Six core areas
Five core areas
15 Debt Management Indicators (DPIs)
14 Debt Management Indicators (DPIs)
35 dimensions
33 dimensions
DPI 15 and its first two dimensions (DPI15-1 and 15-2) on statutory and contractual reporting are discontinued
The third dimension (DPI15-3) on statistics bulletin is moved to DPI4 – Reporting and Evaluation. Both dimensions of revised DPI4 are related to the transparency and accountability of government debt management duties.

8. Structure of DeMPA DeMPA 2009 DeMPA 2015
Governance and Strategy Development
DPI-1
Legal Framework (1dimension)
Legal Framework (1 dimension)
DPI-2
Managerial Structure (2 dimensions)
DPI-3
Debt Management Strategy (2 dimensions)
DPI-4
Evaluation of Debt Management Operations (1 dimension)
Reporting and Evaluation (2 dimensions)
DPI-5
Audit (2 dimensions)
Coordination with Macroeconomic Policies
DPI-6
Coordination with Fiscal Policy (2 dimensions)
DPI-7
Coordination with Monetary Policy (3 dimensions)
Borrowing and Related Financing Activities
DPI-8
Domestic Market Borrowing (2 dimensions)
Domestic Borrowing (2 dimensions)
DPI-9
External Borrowing (3 dimensions)
DPI-10
Loan Guarantees, On-Lending, and Derivatives (3 dimensions)
Loan Guarantees, On-lending and Derivatives (3 dimensions)

9. Structure of DeMPA discontinued DeMPA 2009 DeMPA 2015
Cash Flow Forecasting and Cash Balance Management
DPI-11
Cash Flow Forecasting and Cash Balance Management (2 dimensions)
Operational Risk Management
Debt Recording and Operational Risk Management
DPI-12
Debt Administration and Data Security (4 dimensions)
DPI13
Segregation of Duties, Staff Capacity, and Business Continuity (3 dimensions)
DPI-13
DPI14
Debt Records (2 dimensions)
Debt Recording and Reporting
DPI-14
DPI-15
Debt Reporting (3 dimensions)
discontinued

10. Debt and cash management - DeMPA DPI 11
Two core areas of assessment:
Cash flow forecasting, commonly the responsibility of the Treasury unit
Effectiveness of forecasting the aggregate level of cash balances in government bank accounts
2. Cash balance management, commonly the responsibility of the Debt Management unit or the Treasury unit
Decision of an appropriate cash balance (liquidity buffer) and effectiveness of managing this cash balance in government bank accounts (including the integration with any domestic debt borrowing program, if required)

11. Performance-tracking reveals remaining challenges
Breakdown of scores C and higher by Debt Management categories
(using the results of the latest DeMPA report)

12. Results to-date in ECA

13. Web link: http://worldbank.org/debt www.DMFacility.org
Thank you
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