ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Monday, May 18, 2009

Tactics For Emerging Market Countries - Debt Management

Debra von Koch discussed challenges in debt management for emerging market countries at the 23rd ICGFM Conference. Ms. von Koch is the Associate Director of the Government Debt in U.S. Treasury Office of Technical Assistance .

Ms. Van Koch suggested that the crisis has reached emerging market countries at varying speeds, with differing results. She described the pressures that are creating fiscal gaps. Many of the solutions to overcome government financial problems can have negative consequences.

Ms. von Koch pointed out that countries that have reformed with stronger fiscal controls and management have been weathering the downturn better than other emerging nations. She described how difficult it has become to borrow. And, debt is becoming a larger portion of the government budget.

More efficient monetary policy and broader capital market development is required. New investment vehicle like savings bonds are needed.

Ms. von Koch recommends that countries should upgrade debt strategies and restructure debt. Governments need to improve cash management and forecasting. Many countries have thousands of bank accounts that are not effectively used for investment and reduced borrowing.

Openess and transparency on government policy will increase investor confidence, according to Ms. von Koch.

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