Debt Management Performance Assessment : Dominica
The World Bank and the Eastern Caribbean Central Bank (ECCB) undertook a comprehensive assessment of the debt management (DeM) functions of the Government of Dominica (GoD) from June 18 to 22, 2018.The main outcomes of the debt management performan...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/425791592932352217/Debt-Management-Performance-Assessment-DeMPA-Dominica http://hdl.handle.net/10986/34006 |
| Summary: | The World Bank and the Eastern Caribbean
Central Bank (ECCB) undertook a comprehensive assessment of
the debt management (DeM) functions of the Government of
Dominica (GoD) from June 18 to 22, 2018.The main outcomes of
the debt management performance assessment are as follows:
The assessment indicates that legal framework includes clear
authorization for the Minister of Finance to borrow and
issue loan guarantees on behalf of the Government. However,
authorization to issue bonds in the regional market is not
clearly defined.legal framework is fragmented and does not
include borrowing purposes. The Debt Management Unit (DMU)
is the principal guarantee entity but the borrowing
operations involve more entities and are not well
coordinated.Reasonably reliable debt service forecasts are
produced by the DMU, but in-house debt sustainability
analysis (DSA) is not undertaken. A staff in Macroeconomic
Unit within the MoF has received training in the use of DSA
framework and plans to undertake the exercise in-house in
the coming fiscal year.Cash flows are forecasted on a
monthly basis, but not submitted to the ECCB for liquidity
management purposes. The Government has access to a
well-developed Regional Government Securities Market (RGSM),
but the potential has not been fully reaped, since Treasury
bills (T-bills) are also issued locally with less advanced
techniques, implying significant exposure to operational
risks.Monthly detailed cash flow forecasts are prepared by
the Accountant General´s Office (AGO) which could be used to
guide upcoming budget allocation and short-term T-bill
issuance for cash management purposes.The DMU is maintaining
complete government debt and guarantees’ records which are
updated quickly due to well-developed contacts with
creditors and projects.The DMU has developed a draft
procedures manual but it does not cover all DeM procedures
and it has not been finalized. The DMU staff capacity is not
sufficient and the work is not organized with adequate
segregation of duties. |
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