Transparency and Accountability
Clarity of roles, responsibilities and objectives of financial agencies responsible for debt management
The allocation of responsibilities among the ministry of finance, the central bank, or a separate debt management agency, for debt management policy advice, and for undertaking primary debt issues, secondary market arrangements, depository facilities, and clearing and settlement arrangements for trade in government securities, should be publicly disclosed.
The objectives for debt management should be clearly defined and publicly disclosed, and the measures of cost and risk that are adopted should be explained.
Open process for formulating and reporting of debt management policies
Materially important aspects of debt management operations should be publicly disclosed.
Public availability of information on debt management policies
The public should be provided with information on the past, current, and projected budgetary activity, including its financing, and the consolidated financial position of the government.
The government should regularly publish information on the stock and composition of its debt and financial assets, including their currency, maturity, and interest rate structure.
Accountability and assurances of integrity by agencies responsible for debt management
Debt management activities should be audited annually by external auditors.
The legal framework should clarify the authority to borrow and to issue new debt, invest, and undertake transactions on the government's behalf.
The organizational framework for debt management should be well specified, and ensure that mandates and roles are well articulated.
Management of internal operations
Risks of government losses from inadequate operational controls should be managed according to sound business practices, including well-articulated responsibilities for staff, and clear monitoring and control policies and reporting arrangements.
Debt management activities should be supported by an accurate and comprehensive management information system with proper safeguards.
Staff involved in debt management should be subject to a code-of-conduct and conflict-of-interest guidelines regarding the management of their personal financial affairs.
Sound business recovery procedures should be in place to mitigate the risk that debt management activities might be severely disrupted by natural disasters, social unrest, or acts of terrorism.
Debt Management Strategy
The risks inherent in the structure of the government's debt should be carefully monitored and evaluated. These risks should be mitigated to the extent feasible by modifying the debt structure, taking into account the cost of doing so.
In order to help guide borrowing decisions and reduce the government's risk, debt managers should consider the financial and other risk characteristics of the government's cash flows.
Debt managers should carefully assess and manage the risks associated with foreign-currency and short-term or floating rate debt.
There should be cost-effective cash management policies in place to enable the authorities to meet with a high degree of certainty their financial obligations as they fall due.
Thank you for reading and please share, comment and follow the channel for more.
Content created and supplied by: Vinokeyo (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More