2016年-世界发展银行全球_Subnational_Debt_Management_Performance_Assessment_Methodology_75页_1mb

Subnational Debt Management Performance Assessment (DeMPA) Summary

Core Content

The Subnational Debt Management Performance Assessment (SN DeMPA) is a methodology developed by the World Bank to evaluate the debt management practices of subnational governments (SNGs) in developing countries. It is designed to support fiscal sustainability, prudent debt management, and alignment with macroeconomic stability. The SN DeMPA is based on the Public Expenditure and Financial Accountability (PEFA) framework and is tailored to the specific context of subnational governance, which differs from the sovereign DeMPA tool.

The assessment is structured around 13 Debt Management Performance Indicators (DPIs), which evaluate various aspects of subnational debt management, including governance, coordination with fiscal policy, borrowing activities, cash flow management, and risk management. Each DPI is scored on a scale of A, B, C, or D, with A indicating sound practice, B reflecting practices between minimum requirements and sound practice, C indicating minimum requirements, and D signaling deficiencies requiring corrective action.

The SN DeMPA is applied to individual subnational entities that have the capacity to incur debt or plan to do so, and it focuses on explicit direct and contingent liabilities. It does not assess implicit liabilities, such as social security schemes or future pensions, nor does it evaluate the management of assets like land or infrastructure.

Main Views

• SN DeMPA is context-specific: It must reflect the intergovernmental framework of the country, including fiscal rules and the relationship between subnational and central governments.
• Subnational entities vary in size and autonomy: Some SNGs operate with limited borrowing freedom, while others have more autonomy and are expected to follow more comprehensive fiscal and DeM rules.
• SN DeMPA is not a substitute for PEFA: It can be used alongside PEFA assessments or to explain poor PEFA ratings in the area of debt management.
• SN DeMPA is not limited to central bank interactions: While central banks may not directly manage subnational debt, the assessment considers their role in liquidity management and fiscal transfers.
• Legal framework is central to DeM performance: The existence and clarity of legal instruments governing borrowing, guarantees, and DeM strategy are critical for ensuring sound practices and transparency.

Key Information

Scope and Coverage

• The SN DeMPA evaluates subnational debt management activities, including borrowing planning, bond issuance, external borrowing, loan guarantees, and cash flow forecasting.
• It is not applicable to entities that do not have debt or borrowing activities, or to those with insufficient data to assess.
• It excludes implicit liabilities and asset management, focusing only on explicit direct and contingent liabilities.

Indicators Overview

The SN DeMPA includes the following key indicators:

1. Governance and Strategy Development

   • DPI-1: Legal Framework
   • DPI-2: Managerial Structure
   • DPI-3: Debt Management Strategy
   • DPI-4: Debt Reporting and Evaluation
   • DPI-5: Audit

2. Coordination with Fiscal and Budgetary Policy

   • DPI-6: Coordination with Fiscal Policy and Budgetary Process

3. Borrowing and Related Financing Activities

   • DPI-7: Domestic Borrowing
   • DPI-8: External Borrowing
   • DPI-9: Loan Guarantees, On-lending, and Derivatives

4. Cash Flow Forecasting and Cash Balance Management

   • DPI-10: Cash Flow Forecasting and Cash Balance Management

5. Debt Recording and Operational Risk Management

   • DPI-11: Debt Administration and Data Security
   • DPI-12: Segregation of Duties, Staff Capacity, and Business Continuity
   • DPI-13: Debt and Debt-Related Records

Scoring Methodology

• Scores are assigned based on legal and procedural compliance.
• A indicates sound practice.
• B indicates compliance with minimum requirements but not full sound practice.
• C indicates minimum requirements are met.
• D indicates deficiencies requiring corrective action.
• N/A is used when an activity is not undertaken.
• N/R is used when insufficient information makes assessment difficult.

Legal Framework (DPI-1)

• The legal framework must clearly define borrowing authority, purposes, and procedures.
• It should include:
  • Authorization to borrow and undertake debt-related transactions
  • Specified borrowing purposes
  • Clear DeM objectives
  • Requirement to develop a medium-term debt strategy
  • Mandatory reporting to local assemblies or equivalent bodies
• The legal framework should also limit direct access to financial resources from the central bank to prevent monetary financing of deficits.
• In federal systems, subnational entities may have more autonomy, while in unitary systems, the central government typically sets the regulatory framework.

Conclusion

The SN DeMPA is a comprehensive and structured tool for assessing the debt management capabilities of subnational governments. It emphasizes the importance of legal clarity, institutional capacity, and coordination with fiscal and monetary policies. The methodology is flexible, allowing for context-specific assessments, and is designed to support the development of targeted capacity-building initiatives. The framework ensures that subnational debt management practices are aligned with international sound standards and national fiscal frameworks, while also recognizing the diverse nature of subnational governance.