2008年-世界发展银行全球_Debt_Management_Performance_Assessment___Mongolia_20页_1mb

Debt Management Performance Assessment (DeMPA) Summary - Mongolia

Core Content

The Debt Management Performance Assessment (DeMPA) is a methodology developed by the World Bank to evaluate the performance of public debt management through a set of 15 indicators. It is based on the Public Expenditure and Financial Accountability (PEFA) framework and is particularly tailored for Low Income Countries (LICs). The DeMPA tool is used to assess governance, strategy development, coordination with macroeconomic policies, borrowing activities, operational risk management, and debt records and reporting.

A World Bank mission conducted an assessment of Mongolia's debt management in April 2008, focusing on the implementation of the DeMPA tool. The assessment was part of the World Bank Governance Assistance Program (GAP) and aimed to evaluate the progress made in the debt management sub-component of the program. The findings were intended to support future reforms and audits in the debt management area.

Main Viewpoints

• Governance and Strategy Development: Mongolia scores relatively high in governance and strategy development, but lacks a formal medium-term debt management strategy and clear objectives for managing public debt.
• Coordination with Macroeconomic Policies: There is a strong coordination mechanism with fiscal policy, but coordination with monetary policy is limited due to the lack of strict time limits on overdrafts and the irregularity of domestic debt issuance.
• Borrowing and Financing Activities: Domestic borrowing is limited and mostly project-specific, while external borrowing is heavily reliant on multilateral and bilateral sources with concessional terms.
• Operational Risk Management: Operational risk management is weak, with scores in the D range. This includes areas such as debt administration, data security, and segregation of duties.
• Debt Records and Reporting: Mongolia performs well in debt records, scoring an A, but debt reporting is only at the minimum level, scoring a C.

Key Information

• Public Debt Overview: As of the end of 2007, Mongolia's public debt was approximately 40% of GDP, almost entirely in foreign currency and long-term with concessional terms. Domestic debt is minimal and short-term.
• Legal Framework: The legal framework is clear in terms of authority delegation, but lacks formal objectives for public debt management and a medium-term strategy.
• Managerial Structure: The Debt Management Division (DMD) is responsible for domestic borrowing, while the Loan and Aid Coordination Department (LACD) handles external borrowing. The DMD does not participate in loan negotiations, which limits its capacity.
• Debt Management Strategy: A strategy was approved in 2007, focusing on increasing domestic debt and reducing foreign exchange risk, but it is not published and lacks specific risk indicators.
• Evaluation of Debt Management Operations: There is no formal evaluation of debt management outcomes or compliance with the strategy, resulting in a C score.
• Audit: The Mongolian National Audit Organization (MNAO) is the supreme audit institution, but internal audits of the debt management function are lacking, limiting the audit score to C.
• Debt Sustainability: A joint World Bank/IMF analysis concluded that Mongolia is unlikely to face debt distress under historical risk scenarios, but the potential for large external sovereign bond issuance at market terms could raise concerns.

Performance Indicators Summary

On-going Reforms

• A sub-component of the GAP program is focused on building capacity in public debt management, particularly within the DMD.
• The reform plan is based on a 2006 Needs Assessment and includes institutional review, strategy development, and capacity building.
• Despite relatively high staff capacity, the current focus on project-related tasks hampers the development of core debt management capabilities.
• The DMD is responsible for domestic borrowing, while the LACD handles external borrowing, and there is a lack of formal involvement in loan negotiations.

Conclusion

The DeMPA assessment highlights that Mongolia has a strong legal and institutional framework for debt management but lacks formal strategic planning and operational risk management. The assessment serves as a basis for further reforms and audits, emphasizing the need for a more comprehensive and structured approach to public debt management.