In May 2007, the Boards of the Executive Directors of the World Bank and the International Monetary Fund endorsed a public debt management program with a focus on strengthening frameworks and capacity in low-income countries. In November 2008, the DMF for Low-Income Countries was launched to provide grant-based technical assistance on debt management to developing countries. The work under the DMF aims to strengthen debt management capacity and institutions via the supply of global public goods as well as to facilitate knowledge sharing and coordination among debt management providers.
The launch of the DMF has coincided with one of the most acute turbulences in global financial markets since the Great Depression. In an environment of tight financing conditions in international financial markets, many countries have been experiencing a sizeable reduction in capital flows and elevated rollover risks. Would these stringent financial conditions lead to a wave of sovereign debt problems around the world? Or would countries, given their stronger fundamentals compared to previous crises’ episodes, successfully muddle through the crisis? What are the specific challenges for low-income countries with respect to debt management?
Invitees include international and regional technical assistance (TA) agencies, private sector TA providers, decision makers and debt managers from developing countries, representatives of civil society organizations, as well as bilateral donors and staff from multilateral development banks.