Strategy for public debt management

More transparency with investors, rating agencies

The Ministry of Finance launched a two-year strategy for a more efficient management of public debt. It will involve annual programs aimed at improving control of public funds.

As part of this strategy, the Ministry established the Directorate of Public Debt. Executive decrees concerning the Directorate had been drafted in 2004 and were ratified early last year.

Alain Bifani, Director General at the Ministry, said the strategy calls for the better management of the medium- and long-term relationship between cost and risk. It points to the need to access diverse financial markets in order to lower funding costs. It also stipulates the need to enhance transparency and confidence for investors and international rating agencies.

“The Directorate modernized a number of its procedures to improve the quality and accuracy of information about debt characteristics, strategic planning, and risk management,” said Bifani.

According to Bifani, the strategy will be updated periodically based on market developments. Contingent liabilities will be made part of the public debt management.