2011年-世界发展银行全球_Debt_Management_Performance_Assessment___Albania_32页_854kb

Debt Management Performance Assessment (DeMPA) Summary: Albania

Core Content

The Debt Management Performance Assessment (DeMPA) is a methodology used by the World Bank to evaluate the performance of government debt management functions. It includes 15 debt performance indicators (DPIs) that cover the full range of debt management operations and the institutional environment in which they are conducted. The DeMPA tool is adapted from the PEFA framework and includes a scoring methodology that evaluates each dimension of the indicators on a scale of A, B, C, or D.

A World Bank team conducted a DeMPA mission in Albania from November 8 to 17, 2010, using the December 2009 version of the DeMPA tool. The assessment found that Albania performs well in several areas, with 11 dimensions scoring A, 5 scoring B, 12 scoring C, and 5 scoring D. This places Albania among the few countries with strong debt management practices in the largest number of areas under the DeMPA methodology.

Main Points

Key Strengths

• Governance and Strategy Development: Strong performance in legal framework (B), managerial structure (A), and debt management strategy (A).
• Coordination with Macroeconomic Policies: Good coordination with fiscal policy (B), monetary policy (A), and domestic market borrowing (A).
• Debt Management Strategy: The strategy document is of high quality (A), with a clear decision-making process, regular updates, and publication (A).
• Domestic Borrowing: Well-structured market-based mechanisms and documented procedures (A).

Areas for Improvement

• External Borrowing: Poor performance in terms of borrowing plan and assessment of costs and terms (D), and availability of documented procedures (D). The involvement of legal advisers is at a satisfactory level (A).
• Operational Risk Management: Limited in the development of business continuity and disaster recovery plans (D).
• Debt Records and Reporting: Incomplete and untimely debt records (B), and the debt statistical bulletin lacks quality and timeliness (D).

Key Information

Legal Framework

• The legal framework for debt management is covered by the Constitution, the Law on Government Loan, Debt and Loan Guarantees (2006), and the Law on Management of the Budgetary System (2007).
• The Constitution mandates that the central government can only borrow or guarantee loans when authorized by law.
• The Law on Government Loan, Debt and Loan Guarantees provides clear authority to the Minister of Finance for borrowing and issuing loan guarantees.
• The legal framework includes mandatory annual reporting to the Assembly on central government debt and loan guarantees, and mandates external audits of debt management activities.

Managerial Structure

• The General Directorate of Public Debt Management (GDPDM) was established in 2008 within the Ministry of Finance.
• It is structured into three directorates: Borrowing, Strategy and Risk, and Registration and Debt Service.
• The Director General of GDPDM and the Minister of Finance approve all borrowings and debt-related transactions.
• There is no evidence of undue political interference in the borrowing process.

Debt Management Strategy

• A medium-term debt management strategy is prepared annually on a rolling basis since 2006.
• The 2009 strategy covers 2010–2012 and outlines the goals of meeting funding requirements and promoting the development of the domestic debt market.
• The strategy includes a cost and risk analysis of four alternative borrowing strategies, tested against macroeconomic scenarios.
• The strategy is updated annually, published on the Ministry of Finance's website, and approved by the Council of Ministers.

Debt Management Operations

• Annual reports on debt management activities are submitted to the Assembly and include details on public debt, debt servicing, and compliance with the strategy.
• The 2010 report highlighted the high interest rate of the euro loan issued in 2009.
• The report lacks a detailed discussion of the debt management strategy and its compliance with objectives.

Audit

• The State Supreme Audit Institution conducts compliance audits of debt management operations, including checks on adherence to legal provisions.
• The audit found that the debt management strategy was approved only by the Minister of Finance, not the Council of Ministers, as required by law.
• Recommendations were made to improve the auction process, which the Ministry of Finance has addressed.
• The Ministry of Finance plans to conduct internal audits of GDPDM operations in 2011, focusing on internal controls, risk assessments, and human resources.

Conclusion

Albania demonstrates strong governance and strategy development in its debt management practices, with clear legal provisions and a formalized managerial structure. The country has made notable progress since the first DeMPA assessment in 2007, particularly in the quality of its debt management strategy and the involvement of legal advisors in external borrowing. However, areas such as external borrowing, operational risk management, and debt records and reporting require further improvements. The DeMPA highlights the need for more systematic planning and assessment of external borrowings, enhanced risk management frameworks, and better tracking of foreign holdings of government securities.