Treasury Management for Governments

Governments should develop clear goals for sovereign debt management and should separate the responsibility for debt management policy from monetary policy.  Sovereign debt management responsibilities should be centralized as much as possible. 

Estratégia para a Gestão da Dívida Pública.   An essay on issues to consider.  Aug 2017.  

Vajs: Government debt issuance: issues for central banks, in BIS Papers No 76, The Role of Central Banks in Macroeconomic and Financial Stability, BIS,  February 2014  https://www.bis.org/publ/bppdf/bispap76d.pdf

Also available as

Vajs: Émissions de dette publique: questions pouvant intéresser les banques centrales, dans BIS Papers No 76, Le rôle des banques centrales dans la stabilité macroéconomique et financière, BIS, Février 2014  https://www.bis.org/publ/bppdf/bispap76_fr.pdf

Staffs of the IMF and the World Bank:  Revised Guidelines for Public Debt Management, March 2001.  http://www.imf.org/external/np/pp/eng/2014/040114.pdf

Staff of the IMF and World Bank, Developing a Medium-Term Debt Management Strategy (MTDS)—Guidance Note for Country Authorities (Washington, DC), March 3, 2009.  https://www.imf.org/external/np/pp/eng/2009/030309A.pdf

A debt management strategy.  What is required to produce a useful debt management strategy?  What should be the goal of the strategy?  How should risks be considered?  Can an optimal debt strategy be developed?  What is a reasonable time horizon for the strategy?

Debt management strategies

Portfolio management

Measuring debt issuance quality

Khan, Harun R : Public debt management – reflections on strategy & structure.  Keynote address by Mr Harun R Khan, Deputy Governor of the Reserve Bank of India, at the 9th Annual International Conference on “Public Policy & Management: Debt Management”, (Indian Institute of Management, Bangalore, 11 August 2014). http://www.bis.org/review/r140818a.pdf

To Read Further ... 

Distributing debt into markets or to investors.  What are the principal means of distributing securities?  What considerations should guide the selection of the distribution method?

Selecting securities to issue.  What should be considered when selecting benchmarks?  What other issues come into play with debt issuance?  Where and in what form should security offerings take place?

Performance criteria for issuing debt.  By what measure can we say that debt management has been well  done?  How does one choose a metric or more than one metric?  Measurements do not have to be quantitative.  They should answer questions about your debt management goals. 

Measuring costs when issuing debt.  Lowest cost borrowing is commonly cited as a guiding principle for debt operations.  In what sense can this be interpreted and what are the implications of varying definitions of cost and how it is measured?

The reason for issuing debt.  What purpose is being served by this debt?  It may be for purely fiscal reasons, for cash management reasons, for market development, or for liquidity management on behalf of the central bank.

Praxis: Debt -  Debt strategy