2008年-世界发展银行全球_Debt_Management_Performance_Assessment___Togo_27页_462kb

Debt Management Performance Assessment (DeMPA) Summary - Togo

Core Content

The Debt Management Performance Assessment (DeMPA) is a methodology used to evaluate the effectiveness of a country's public debt management operations through 15 performance indicators. This report focuses on Togo, where the DeMPA was implemented for the first time in 2007, following a period of political and economic instability. Togo is currently in debt distress, with significant arrears on both external and domestic debt. The country has limited debt servicing capacity, and debt management has been largely reactive rather than strategic.

Main Findings

1. Current Debt Situation

• External Debt: US$1.8 billion (81% of GDP), with 31.8% in arrears.
• Domestic Debt: Less than 20% of total debt, with 25.8% in arrears.
• Multilateral Debt: Accounts for 56% of external debt, mainly owed to the World Bank and African Development Bank.
• Bilateral Debt: Mostly owed to Paris Club creditors.
• Debt Management Entities:
  • Direction de la Dette (DD): Part of the Treasury, responsible for external debt and some advisory roles in borrowing.
  • Ministry of the Economy (MoE): Handles borrowing and loan negotiations.
  • Treasury: Manages domestic debt and has limited coordination with the DD.
  • Central Bank for West African States (BCEAO): Involved in domestic debt issues and auctions.

2. Key Issues Identified

• Legal Framework: Inadequate and inconsistent, with some laws not having implementing decrees and lack of enforcement.
• Managerial Structure: Fragmented, with poor coordination between entities involved in debt management.
• Debt Management Strategy: Non-existent; the government follows an informal strategy based on prioritizing creditors still engaged.
• Debt Records and Reporting: Incomplete and unreliable, leading to poor transparency.
• Audit: No internal or external audits have been conducted in the past five years, and the audit process is not well established.
• Cash Flow Forecasting: Lacks integration with broader fiscal planning, resulting in limited transparency in the budget process.

Main Viewpoints

1. Strengths

• Coordination with Monetary Policy: Togo receives an 'A' score in this area due to its membership in the UEMOA, which restricts direct access to central bank financing, thereby promoting fiscal discipline.
• Staff Competence: The debt office has competent staff capable of handling basic debt management operations.

2. Areas for Improvement

• Legal Framework: Needs to be strengthened through the implementation of UEMOA regulations and new legislation to clarify mandates and improve coordination.
• Debt Strategy: A formal debt management strategy is needed to guide future borrowing and ensure sustainability.
• Record-Keeping and Reporting: Systems are not accurate or complete, requiring investment in better data management and reporting mechanisms.
• Coordination: There is a lack of coordination between the DD, MoE, and other relevant entities, which affects the timeliness and reliability of information.
• Audit and Transparency: The absence of regular audits and comprehensive reporting undermines accountability and transparency in debt management.

Key Information

• DeMPA Implementation: Togo is the first country to formally implement the DeMPA tool.
• UEMOA Membership: Provides a stable monetary policy environment and access to technical assistance.
• Debt Arrears: Both external and domestic debt are heavily burdened with arrears, indicating poor debt management practices.
• Debt Management Strategy: Currently non-existent, with the government relying on informal practices.
• Legal Reforms: The country has committed to implementing UEMOA regulations, which could significantly improve its legal and institutional framework.
• Audit Progress: KPMG conducted an audit of domestic arrears in 2006, but no follow-up audits have been carried out.

Summary of Performance Indicators

Conclusion

Togo's debt management system is in a state of distress, with significant arrears and a lack of formal strategy and coordination. While there are some strengths in the coordination with monetary policy, the overall system requires substantial reform. The implementation of UEMOA regulations and the development of a formal debt management strategy are critical steps to improve the country's debt management performance and ensure sustainable public finance.