Changing the game in public debt management

Debt financing can help countries achieve sustained and inclusive growth. When managed poorly, however, it can generate substantial risk to the budget—potentially undermining key development objectives.

 

Since 2008, the DMF has been a game-changer in strengthening the debt-management capabilities of the poorest countries. Today, 88 countries benefit from the DMF, which provides cutting-edge technical advice and training for local-debt management officials. Debt management capacity in these countries has significantly increased - especially in areas such as governance, strategy development, borrowing, and related financing activities.

 

The DMF has also played a pivotal role in debt-management reforms: more than 70 percent of the reforms adopted by DMF countries regarding the development of debt-management strategies grew out of the work of the DMF, according to country debt managers.

 

The “Building Debt Management Capacity” reviews the Debt Management Facility (2009–25) and shows how sustained, programmatic capacity development has strengthened public debt management institutions, improved transparency, and delivered concrete reform outcomes across developing countries. It highlights close IMF–World Bank collaboration, (joint diagnostics, strategy work, legal and institutional reforms, and hands on implementation support) often integrated with IMF programs, and underscores the importance of coordinated, multi year engagement in moving reforms from design to execution, particularly in high risk and fragile settings.