2010年-世界发展银行全球_Debt_Management_Performance_Assessment___Papua_New_Guinea_29页_8mb

Debt Management Performance Assessment (DeMPA) Summary for Papua New Guinea

Core Content

The Debt Management Performance Assessment (DeMPA) is a comprehensive tool used to evaluate the effectiveness of a country's public debt management practices. It consists of 15 Debt Management Performance Indicators (DPIs) that assess various aspects of debt management, from legal frameworks to reporting and data security. The DeMPA was applied to Papua New Guinea (PNG) in 2010, with the findings presented in this report.

Key Findings

Strengths

• Debt Management Strategy: The quality of the debt management strategy is considered strong, with a clear medium-term debt management strategy (MTDS) in place.
• Domestic Debt Issuance: The framework for domestic debt issuance is well-established, with the Financial Evaluation Division (FED) playing a central role.
• Coordination with Monetary Policy: Coordination with monetary policy is effective, with regular information sharing between FED and the central bank.
• Legal Framework: The legal framework for central government debt management is comprehensive, though it lacks specific restrictions on the purposes of T-bill borrowing.

Weaknesses

• Disclosure and Publication: There is a lack of transparency in the disclosure and publication of debt activities.
• Internal and External Audit: The Department of Treasury lacks an internal audit function, and there has been no external audit of debt management processes.
• Loan Guarantees: The process for issuing loan guarantees is not well-documented or transparent.
• Business Continuity: There is a lack of a formal business continuity plan.
• Documentation of Procedures: Procedures for external debt contracting and recording are not well-documented, leading to a low score.

Main Points

Economic Background

• PNG has experienced significant economic improvement since the mid-2000s, driven by higher global commodity prices and better macroeconomic management.
• The economy expanded by 5.5% in 2009, outperforming most other developing economies and regional peers.
• Non-mineral sectors, particularly telecommunications and aviation, have benefited from private investment.
• Inflation has returned to high levels due to domestic demand pressures and capacity constraints, despite the global downturn.

Debt and Debt Sustainability

• The public-sector debt-to-GDP ratio has decreased from 62% in 2004 to 32% in 2009.
• The share of short-term credit in domestic debt is still above the government's target of 15–30%.
• The average maturity of domestic debt is below the MTDS target of 5 years.
• Public and publicly-guaranteed external debt has decreased significantly, with over 90% held by multilateral institutions.
• The 2011 budget aims to remove the nominal cap on external debt and introduce a cap of 30% of GDP.
• The government has committed to managing mineral revenues through sovereign wealth funds and reducing exchange rate risks by targeting 40% of total debt for the external portion.

Reforms and Capacity Building

• The government has been working on strengthening public finance management systems, including debt management, over the past decade.
• AusAID has supported the development of the medium-term debt management strategy through technical advisors.
• ComSEC and ADB have provided ongoing technical assistance and support for the debt management unit.
• The debt management unit has implemented internal training and capacity-building programs.

Summary of DPI Scores

Conclusion

The DeMPA assessment highlights that PNG has made progress in several areas of debt management, particularly in the quality of its debt strategy and coordination with monetary policy. However, significant weaknesses remain, especially in transparency, audit, and documentation of procedures. Reforms are ongoing, particularly in restructuring the FED and developing policies for on-lending and loan guarantees. The government's commitment to managing debt more sustainably and reducing risks is evident, but the implementation of these reforms and the improvement of governance practices remain critical for long-term debt sustainability.