scholarly journals Models of Public Debt Management in the World and Lessons for Vietnam

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Pham Xuan Truong
Keyword(s):  
World Bank ◽  
Public Debt ◽  
Management Strategies ◽  
Policy Research ◽  
Government Debt ◽  
Central Banking ◽  
Debt Management ◽  
Working Paper ◽  
The World ◽  
Public Debt Management

Vietnam embarked on fundamentally building a public debt management system since 2009 as the Law of Public Debt Management was designed and promulgated. From then Vietnam has been following the typical model of public debt management used by developing countries, the market – based model which encompasses gradual building and completion of domestic market for government bond. However, because of several limitations in the national system of public debt management, the current model needs to be improved in alignment with the development level of Vietnam’s economy. Especially, economic shocks such as the 2009 financial crisis or Covid 19 which has increased dramatically the scope of public debt also urge a more technical and effective model. The paper focuses on analyzing the practical models of public debt management in the world and subsequently the current situation of Vietnam’s model. On that basis, the author figures out the limitations of the model and proposes a number of solutions to upgrade the model in accordance with the international practice regarding model of public debt management suitable with development level of economy.  Keywords Public debt, sustainable public debt, public debt management, risk management, model of public debt management. References [1] D.Q. Bao, The science of Management and Organization Statistical Publishing House, Hanoi, 1999 (in Vietnamese),[2] IMF, Defining the Government’s debt and deficit, Working paper, WP/15/238, 2015.[3] IMF, Revised guidelines for public debt management, IMF Policy paper, 2014.[4] WB, Government debt management: Designing debt management strategies, Debt management learning & training note, 2017. [5] E. Currie, J. Dethier and E. Togo, Institutional arrangements for Public Debt Management, World Bank Policy Research Working Paper 3021, 2003.[6] E.C. Pascal, The debt office and the effective debt management functions: an institutional and operational framework, Public debt and Public Finance Working Paper, 2006.[7] H. Bohn, Tax Smoothing with Financial Instruments, American Economic Review, 80/5 (1990) pp 1217–1230.[8] J. Tobin, An Essay on the Principles of Debt Management, Fiscal and Debt Management Policies, 2 (1963), Reprinted in J. Tobin Essays in Economics, vol.1, Amsterdam: North Holland, 1971.[9] E. Togo, Coordinating Public Debt Management with Fiscal and Monetary Policies: An Analytical Framework, World Bank Policy Research Working Paper, No. 4369, 2007.[10] L. Hoogduin, B. Ozturk & P.Wierts, Public debt managers’ behavior: interactions with macro policies, DNB Working paper No.273, 2010.[11] WB, Debt management performance assessment (DeMPA) methodology, 2015.[12] R. Cabral, How strategically is public debt being managed around the globe? A survey on public debt management strategies, WB Financial advisory and Banking department report, 2015.[13] C. Aslan, A. Ajazaj & S.A. Wahidh, Study on Public debt management system and results of a survey on solutions used by debt management office, WB Financial advisory and Banking department report, 2018.[14] IMF, G-20 note: Improving public debt recording, monitoring, and reporting capacity in low and lower middle-income countries: proposed reforms, 2018.[15] A.A. Badurina, S. Svaljek, Public debt management before, during and after the crisis, Finance theory and practice, 36(1) (2012) 73 – 100.[16] I. Storkey, Sound practice, in: M. Williams and P. Brione (Eds.), Government Debt Management: New Trends and Challenge, Central Banking Publications Ltd, London, 2006, pp 300 – 325.[17] G. Wheeler, Sound Practice in Government Debt Management, The World Bank Publication, Washington D.C, 2004. doi. 10.1596/0-8213-5073-0.[18] National Treasury Management Agency, Ireland Information Memorandum 2010, National Treasury Management Agency, Dublin, 2010.[19] M. Williams, The growing responsibilities of debt management offices, in: M. Williams, P. Brione (Eds.), Government Debt Management: New Trends and Challenge, Central Banking Publications Ltd, London, 2006, pp 258 – 273.[20] H.N. Au, Public debt management in Vietnam in the international integration period (in Vietnamese), https://hcma.vn/Uploads/2018/8/8/Hoang%20Ngoc%20Au%20-%20Luan%20an%20-%20CN%20Quan%20ly%20kinh%20te.pdf, 2018 (accessed 20 August 2020).[21] T. Phung, Firmly maintaining the country’s credit rate (in Vietnamese), http://tapchitaichinh.vn/su-kien-noi-bat/tiep-tuc-giu-vung-muc-xep-hang-tin-nhiem-quoc-gia-325601.html, 2020 (accessed 21 August 2020).[22] N.T. Binh, The factors affecting the efficiency of public debt management in Vietnam (in Vietnamese), http://www.tapchicongthuong.vn/bai-viet/cac-yeu-to-anh-huong-toi-hieu-qua-quan-ly-no-cong-o-viet-nam-73005.htm, 2020 (accessed 22 August 2020).[23] T. Anh, Six solutions for public management in the new context (in Vietnamese), http://tapchitaichinh.vn/su-kien-noi-bat/6-giai-phap-quan-ly-no-cong-trong-boi-canh-moi-308263.html, 2019 (accessed 23 August 2020).  

Strengthening Debt Management Practices - Lessons from Country Experiences and Issues Going Forward

Policy Papers ◽  
2007 ◽  
Vol 2007 (9) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
World Bank ◽  
Public Debt ◽  
Management Practices ◽  
Technical Assistance ◽  
Debt Management ◽  
Pilot Program ◽  
The World Bank ◽  
The World ◽  
Public Debt Management

This paper reviews Bank-Fund staff experience with strengthening public debt management (PDM) frameworks and capacity in developing countries. In 2001, the IMF and the World Bank developed sound practice guidelines in this area, followed by a pilot program to assist 12 countries develop and implement reforms. In addition, an assessment of PDM has been incorporated into surveillance work, where relevant, and included in other Bank and Fund advisory and technical assistance work. Based on these, the paper draws key lessons, identifies the continuing challenges facing debt managers, and proposes further capacity building and advisory work in PDM. The 12 countries in the pilot program were Bulgaria, Colombia, Costa Rica, Croatia, Indonesia, Kenya, Lebanon, Nicaragua, Pakistan, Sri Lanka, Tunisia, and Zambia.

scholarly journals Investment and Growth Amidst Widening Government Debt: “The Ghanaian Story”

2019 ◽  
Vol 11 (1) ◽  
pp. 259
Author(s):  
John Kwaku Mensah Mawutor ◽  
Eric Boachie Yiadom ◽  
Richard Fosu Amankwa
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Inverse Relationship ◽  
Government Debt ◽  
Debt Management ◽  
Percentage Increase ◽  
Development Indicators ◽  
Unique Effect ◽  
Public Debt Management ◽  
World Development

The study revisits the debt-growth nexus and broadens the argument to examine the unique effect of government debt on investment in Ghana. Data from World Development Indicators on the Ghanaian economy were sampled from 1990 to 2015. The empirical results from the Multiple Linear Regression (MLR) suggest an inverse relationship between government debt and economic growth in Ghana. In addition, a percentage increase in government debt reduces investment by 0.65%; implying that government debt harms investment due to fungibility of debt and accompanying debt repayment responsibilities. Policy ramifications resulting from the study are that the Ghanaian government should restructure public debt management to eliminate debt fungibility and reduce debt to GDP ratio as well.

Helping Developing Countries Address Public Debt Management Challenges - An IMF-World Bank Capacity Building Partnership

Policy Papers ◽  
2013 ◽  
Vol 2013 (39) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Capacity Building ◽  
World Bank ◽  
Public Debt ◽  
Debt Management ◽  
Medium Term ◽  
Public Debt Management ◽  
Continued Use ◽  
Building Program ◽  
Capacity Building Program

In 2009, the Boards of the IMF and World Bank jointly endorsed a capacity building program to help developing countries strengthen their public debt management frameworks. A key aspect of the program was to help developing countries implement the framework developed by staffs to formulate an effective medium-term debt management strategy (MTDS). The Boards also supported the continued use of the complementary framework—the Debt Management Performance Assessment (DeMPA)—developed in 2007, to assess the effectiveness of the broader institutional arrangements for public debt management. This paper provides an update on the implementation of the program since its endorsement in 2009.

Revised Guidelines for Public Debt Management

Policy Papers ◽  
2014 ◽  
Vol 2014 (2) ◽  
Author(s):  
Keyword(s):  
World Bank ◽  
Public Debt ◽  
Financial Stability ◽  
Debt Management ◽  
Regulatory Changes ◽  
International Financial Architecture ◽  
Wide Range ◽  
Institutional Structures ◽  
Public Debt Management ◽  
Recent Financial Crisis

The Guidelines for Public Debt Management (Guidelines) have been developed as part of a broader work program undertaken by the IMF and the World Bank to strengthen the international financial architecture, promote policies and practices that contribute to financial stability and transparency, and reduce countries’ external vulnerabilities. In developing the Guidelines, IMF and World Bank staffs worked in close collaboration with debt management entities from a broad group of IMF-World Bank member countries and international institutions in a comprehensive outreach process. The debt managers’ insights, which this process brought to the Guidelines, have enabled the enunciation of broadly applicable principles, as well as institutional and operational foundations, that have relevance for members with a wide range of institutional structures and at different stages of development. The revision of the Guidelines was requested by the G-20 Finance Ministers and Central Bank Governors, at their meeting in Moscow, on February 15–16, 2013. Since their adoption in 2001, and amendments in 2003, financial sector regulatory changes and macroeconomic policy developments, especially in response to the recent financial crisis, have significantly affected the general financial landscape. As a consequence, many countries have experienced significant shifts in their debt portfolios, in terms of both size and composition. Accordingly, the Guidelines were reviewed and revised to reflect the evolving public debt management challenges over the last decade

scholarly journals Features of the EU and Ukraine’s debt policy

2019 ◽  
Vol 16 (4) ◽  
pp. 254-261
Author(s):  
Igor Chugunov ◽  
Valentyna Makohon ◽  
Yuliya Markuts
Keyword(s):  
Public Administration ◽  
Public Debt ◽  
Management Strategies ◽  
Economic Security ◽  
Debt Management ◽  
The Public ◽  
Public Debt Management ◽  
The Impact ◽  
Debt Policy ◽  
The Eu

The world economic globalization determines the feasibility of rethinking fiscal system knowledge on the formation and implementation of debt policy in the countries with transformation and advanced economies. In order to improve the system of public administration, the proper level of financing of innovation-investment projects, the important task is to improve the effectiveness of debt policy instruments and to ensure the consistency of its components. This article describes the essence of debt policy. The features of formation and implementation of the EU and Ukraine’s debt policy in the public administration system are defined in the context of institutional transformations. The authors assess the share of gross debt of the EU countries and the sovereign debt of Ukraine in GDP; conduct a regression analysis of the impact of public debt in GDP on real GDP growth in Ukraine. The article discusses the debt policy tasks, summarizes and systematizes the approaches to its implementation in different countries. The authors identify the features of public debt management strategies in terms of marginal indicators of the budget deficit, public debt, and instruments for improving the effectiveness of the public debt management system. The impact of debt policy on country’s financial and economic security is substantiated.

scholarly journals Critical Analysis of Public Debt and Tendencies of its Management

2015 ◽  
Vol 14 (2) ◽  
pp. 194
Author(s):  
Žaneta Karazijienė
Keyword(s):  
World Bank ◽  
International Monetary Fund ◽  
Public Debt ◽  
Critical Analysis ◽  
Maastricht Treaty ◽  
Debt Management ◽  
The Public ◽  
The World Bank ◽  
The World ◽  
The International Monetary Fund

One of the most important factors in the macroeconomic system of every country is public debt. This is due to the processes of debt forming and its servicing has a significant influence to the financial system, the investment climate, the consumption structure and the development of the international corporation. The most common reason of the public debt and its increase is the existing policy which cannot ensure a steady balance of the state revenue and expenditure. A variety of theoretical concepts of the public debt management, scientists’ attitude towards the public debt, critical indicators (selected according to indicators defined in the Maastricht Treaty and in accordance with the International Monetary Fund and the World Bank requirements) of the acceptability assessment of the public debt are analysed in this article. On the basis of identified critical indicators of the public debt acceptability, the critical analysis of Lithuanian borrowing tendencies and assessment of indicators is performed. The results revealed that Lithuania is often provided for non-compliance with the criteria approved by the Maastricht Treaty or the International Monetary Fund and the World Bank. The mathematical modelling of the Lithuanian public debt projections indicated that a tendency of a positive downward on the Lithuanian public debt share of GDP is likely to happen in the future.

scholarly journals Local Currency Bond Markets Law Reform

2020 ◽  
Vol 20 (258) ◽  
Author(s):  
Wouter Bossu ◽  
Cory Hillier ◽  
Wolfgang Bergthaler
Keyword(s):  
Emerging Markets ◽  
Public Debt ◽  
Developing Economies ◽  
Building Blocks ◽  
Debt Management ◽  
Working Paper ◽  
Regulatory Frameworks ◽  
Design Build ◽  
Key Policy ◽  
Public Debt Management

Recent financial crises including the ongoing one caused by the COVID-19 pandemic have consistently drawn attention to the need to strengthen the quality of public debt management in emerging markets and developing countries. Deeper and more efficient domestic government debt markets—being, a key segment of the LCBM for many emerging markets and developing economies—play a key role in reducing financial vulnerability to shocks and enable governments to finance critical economic and fiscal policy measures in response to them. Policymakers and international organizations have long recognized that developing and strengthening LCBMs is a key policy prescription to sound public debt management. Robust legal and regulatory frameworks are recognized as being critical building blocks for the structure, development and functioning of LCBMs. This Working Paper seeks to outline a strategically anchored methodology that can be applied to design, build and implement the legal and tax foundations for the development of LCBMs that would adequately address common challenges and impediments.

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