The Public Debt Management Newtwork

The PDM Network has been involved since its inception in the 2007-08 G8 Action Plan on “Developing Local Bond Markets in Emerging Market Economies and Developing Countries”.

The PDM Network has been recognized by the G8 Action Plan as one of the several global forums and networks on debt management to address several key issues. In the section related to Public Debt Management and Market Infrastructure, the Plan assesses that: “…the Italian-OECD Public debt management (PDM) network is progressing. This is a virtual platform for debt managers, to promote international dialogue and knowledge sharing. Active users from EMs include Czech Republic, Hungary, Mexico, Poland, and Turkey. The next step is to broaden the participation in the PDM program among EMEs.”

In particular, the PDM Network Secretariat has identified three tools for implementing the G8 Action plan:

• exchange of information on PDM issues through direct involvement of public debt managers from advanced countries that have already experienced and addressed problems now facing emerging financial markets.
• the definition of best practices in PDM is an ongoing process so that frequently up-dated information is crucial to provide appropriate benchmarks for the development of financial markets in emerging countries as well as timely inputs to PDM in advance economies.
• the use of electronic communications makes participation to the Network financially viable to all interested parties providing an inexpensive tool to keep abreast of the most recent developments in PDM.

The Action Plan identified seven key policy issues at further enhancing the development of local currency bond markets in emerging market (EM) economies to enhance financial stability and economic growth:

• Strengthening market infrastructure and debt management strategies;
• Broadening and diversifying the investor base;
• Developing derivatives and swap markets;
• Broadening the database;
• Strengthening regional cooperation;
• Developing domestic bond markets in less developed countries, in particular in Sub-Saharan African countries and Technical Assistance.
• Further broadening and deepening local currency bond markets in these country groups.

The G8 Finance Ministers requested that the International Monetary Fund (IMF) and the World Bank prepare a joint progress report on their implementation of the G8 Action Plan on local bond market development.