DEBT RECORDING AND ANALYSIS

Using CS-DRMS
For Effective Debt Management

Dev Useree

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 Crown Agents
Strong partnership with ComSec
We disseminate CS-DRMS to non-
Commonwealth countries
Also work in Commonwealth
countries supporting the work
done by ComSec
Non-Commonwealth CS-DRMS
user countries (e.g):
– Bhutan
– Afghanistan
– Kosovo
– Cape Verde
– Suriname
– French speaking (Mali, Benin)
Asian Regional Public Debt Management Summit
We are an International
development agency
Headed by a Foundation – which
uses excess funds generated by
Crown Agents to support good
causes and
– provide scholarships to
developing and emerging
economies
UK-based with 40 offices around
the world
Provides Technical Assistance to
governments in managing their
budgets – revenue, expenditure,
aid, borrowing (debt)
Other services – CA Bank, Crown
Agents Investment Management
03 – 05 November 2009, Kuala Lumpur
 Assistance in Aid/Debt Management

Support
International Initiatives
Crown Agents - G-20, WTO,G8,
Draws from HIPC, DeMPA, MTDS
Guidelines for Public Debt Management,
Transparency & Accountability rules

Goal/Outcome at country level

Enhance capacity of client countries in debt management
Build sustainable debt management structure
& Feeds into
Support their efforts to attain the MDGs for poverty
eradication and sustainable development

Key deliverables
Strengthen Set up Debt Build capacity Develop debt Provide policy
legislation for Management in all areas of Strategy advice & assist
borrowing Offices debt management - Existing borrowing with debt
– UK & in-country - New Borrowing analysis

<<<<<<<< Improve Debt Recording and Reporting >>>>>>>>>

Strategy/Approach
Promote local Add value Institutional Heavy Maximise impact - comparative advantage Flexibility to
ownership, open through Development - focus emphasis on •Specialist knowledge (60 debt projects) respond to
participation, etc. strategic on debt & non-debt capacity •Trust, proven team, etc. changing
partnerships issues (HR,MIS) building at all •Specialist tools circumstances
stages

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 Our
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Public Finance Management
Debt Management Services
Advisory Services /Technical Assistance
– Improve Legal and Institutional Arrangements
– Establish modern debt management offices
– Integrate aid/debt with Financial Management
– Undertake Debt Portfolio Reviews, DSA,
– Develop Debt Strategy
– Assist with negotiations/restructuring
Training
Training: – Debt and Aid Recording Systems
Training: – Financial Accounting in Debt
(I)
(I) UK UK – Debt Management Strategies and Techniques
(II) Regional
(II) Regional – Debt Sustainability Analysis
(III)
(III) In-country
In-country – Loan negotiation and Interpretation of Loan Agreements
Implementing Debt Management Systems
– Support debt management systems, CS-DRMS
– Build databases, data validation, report statistics
– Link systems to Government IMFIS
– Produce Add-on for debt systems

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 Debt analysis
Countries at different stages of debt management cycle
– Degree of analysis being undertaken may be different
But whatever stages they are, there are enough features in CS-DRMS available for
“analysing” the debt portfolio
– “Basic” to more “advanced” analysis
Even at basic debt recording stage, some form of analysis already taking place
(loan by loan basis)
– We have already seen what’s provided in CS-DRMS
– Evaluating new loan offers – do not need database to be completed for this to happen
– Analysing reports
Countries do aspire to more active debt analysis
– With different degrees of success
Degree of analysis affected by different factors – how DM organised, how defined
different DM roles are, how DM itself is integrated with other areas of policy
Need to adopt wider approach to debt analysis – as part of macro set up (fiscal,
budget, BOP)
– CS-DRMS does feed information for BOP, budget

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 CS-DRMS
Two ways it supports effective analysis
USE the analytical facilities in-built in CS-DRMS
– You have already heard about the key analytical features
And also SUPPORT debt analysis under other platforms

Provide interface with other analytical tools

Embed CS-DRMS into financial management systems of
governments
– Better data mining, data drilling, data sharing
– Debt analysed by all – even with most senior managers (who can
demand more analysis)
Enable CS-DRMS users to produce own analytical add-ons

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 CS-DRMS
Provide interface with other analytical tools

Open system – easy to download data & use with other analytical
systems

Download any set of data to Use

Excel With
Analytical
CS-DRMS tools
DSA
software
Interface with

DSF

MTDS

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
Embed CS-DRMS in Government Systems

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
CS-DRMS accessible by all for analysis
Data warehouse, Data mining, etc

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 CS-DRMS supporting analysis through Add-ons
Cost at Risk model
Active CS-DRMS user country
– Uses system to manage 5 databases
Marked improvement in debt management over the years
Recently increased focus in embedding “risk” into debt
management decision
Developed a Cost at Risk model – fully compatible with CS-DRMS
Data interface developed between CS-DRMS and the CAR model
Generated results on risk profile
An example where CS-DRMS users can further enhance analysis
through “add-on” analytical tool
Asian Regional Public Debt Management Summit
03 – 05 November 2009, Kuala Lumpur
 Analytical
Add-on to
CS-DRMS

Cost at Risk model: Excel based tool for forecasting max/min debt
service costs, analyse duration, yield curve. etc
Interface with CS-DRMS and provide several indicators of risk
Asian Regional Public Debt Management Summit
03 – 05 November 2009, Kuala Lumpur
 Conclusion
Though greater focus on debt analysis, analytical skills need to be further
enhanced
But though debt analysis does take place
– Extent of analysis and how comprehensive it is may be an issue
Capacity building dedicated to analysis should continue
– May not be enough at the moment
But one should not only rely on system providers for this
Other agencies working on debt management should also support such
initiatives
Debt Analysis in countries can be enhanced by having
– the right institutional framework
– The appropriate tools
– The right and adequate personnel to undertake analytical functions
– A widening scope of debt analysis

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur
 Thank you

www.crownagents.com/debt
Dev.useree@crownagents.co.uk
+44 (0) 7894 600 445

Asian Regional Public Debt Management Summit

03 – 05 November 2009, Kuala Lumpur