2016年-世界发展银行全球_Debt_Management_Performance_Assessment___Kyrgyz_Republic_44页_1mb

Debt Management Performance Assessment (DeMPA) Summary: Kyrgyz Republic

Core Content

The Debt Management Performance Assessment (DeMPA) is a methodology developed by the World Bank to evaluate the effectiveness of a country's government debt management performance. It is based on the Public Expenditure and Financial Accountability (PEFA) framework and includes 14 Debt Performance Indicators (DPIs) that assess various aspects of debt management, including legal frameworks, strategy development, coordination with macroeconomic policies, borrowing activities, cash flow management, and operational risk management.

The DeMPA assessment was conducted in the Kyrgyz Republic in October 2015 by a World Bank team, in collaboration with the Ministry of Finance (MoF), the National Bank of the Kyrgyz Republic (NBKR), and other public entities. The goal was to evaluate the current state of the country's debt management capacity and institutions, and to identify areas for improvement.

Main Objectives

• Assess the current debt management performance in the Kyrgyz Republic.
• Identify areas for reform and capacity building in debt management.
• Provide a basis for designing medium-term priority reforms in line with the identified needs.

Key Findings

Strengths

• The legal framework clearly establishes government debt management responsibilities through the Debt Law and related decrees.
• The MoF has the authority to authorize borrowing and issue loan guarantees.
• The MoF publishes a monthly debt statistics bulletin.
• The PDD prepares an annual report on government debt management and submits it to Parliament.
• The COA conducts annual financial and compliance audits of the government debt management.
• The MoF uses a Treasury Single Account (TSA) at the NBKR for financial transactions.
• There are daily backups of debt data files sent to a separate location.
• There is a registry system for government debt records, scoring "A" for this dimension.

Areas for Improvement

• Fragmentation of debt management entities, with PDD as the main entity but unclear division of roles.
• The current debt law does not include clear debt management objectives or requirements for preparing a medium-term debt management strategy (DMS) or submitting annual reports to Parliament.
• Debt sustainability analysis (DSA) is not carried out.
• Sensitivity analysis of debt service forecasts is not undertaken.
• Cash flow forecasts are not formally developed and shared with the NBKR.
• There are no documented procedures for external and domestic borrowing.
• Analysis of the cost-effectiveness of external borrowing terms is not undertaken.
• There is no comprehensive debt recording system in place.
• Front and back-office functions are not sufficiently separated.
• There is no business continuity or disaster recovery plan.
• Operational risk management framework is not formalized.
• Debt records are not fully complete or timely.
• The debt management strategy lacks detailed guidelines on interest rates, refinancing, and foreign currency risks.

Main Views

Governance and Strategy Development

• The legal framework is in place but lacks clear objectives and mandatory reporting requirements.
• A medium-term debt management strategy (DMS) was approved for 2015–2017, but it does not include all necessary guidelines for effective debt management.
• The strategy development process is not well integrated with the budget process.
• There is limited coordination between the debt management strategy and the medium-term budget framework.

Coordination with Macroeconomic Policies

• There is a clear separation between monetary policy and debt management operations.
• PDD shares debt service forecasts and auction calendars with the NBKR.
• PDD receives macroeconomic forecasts and borrowing requirements from the Budget Policy Department (BPD).
• The fiscal agency role of the NBKR is formalized in bilateral agreements with the MoF.
• However, the debt sustainability analysis (DSA) is not conducted, and there is no formal sharing of cash flow forecasts with the NBKR.

Borrowing and Related Financing Activities

• A monthly auction calendar is prepared.
• Legal advisers are involved in loan negotiations.
• Documented procedures exist for government on-lending operations.
• However, there are no documented procedures for external and domestic borrowing, and cost-effectiveness analysis of external borrowing is not undertaken.

Cash Flow Forecasting and Cash Balance Management

• Bi-weekly meetings between MoF and NBKR technical experts occur to analyze financial plans and budget execution progress.
• The MoF uses a TSA at the NBKR for financial transactions.
• Monthly forecasts of weekly aggregate cash balances are not prepared.
• Surplus cash is not invested at market rates.

Debt Recording and Operational Risk Management

• There are complete and accurate records of external and domestic government debt.
• Informal processes for data recording, validation, and reporting are adequate.
• However, there are no documented procedures for debt servicing, disbursements, and reporting.
• There is no formal operational risk management framework or business continuity plan.
• While data is cross-checked internally and with external creditors, the overall system lacks formalization and robustness.

Key Information

• The Kyrgyz Republic's public debt-to-GDP ratio was 54% in 2014, with external debt accounting for 94% of the total.
• China is the largest external creditor, followed by the World Bank and the Asian Development Bank.
• The country's debt burden is deteriorating due to currency depreciation, increased disbursements from public investment loans, and regional economic slowdown.
• The debt management strategy is in place but lacks comprehensive guidelines and integration with the budget process.
• The MoF has implemented several reforms in public finance management (PFM), supported by the World Bank, and plans to continue with technical assistance.
• The DeMPA assessment highlights the need for stronger legal frameworks, more comprehensive strategies, and improved coordination with macroeconomic policies.

Summary of Scores