The 3rd edition of the biennial Public Debt Management Conference, organized by the Public Debt Management (PDM) Network—a collaborative initiative of the Italian Treasury, the OECD, and the World Bank—was a resounding success. Held at the World Bank headquarters in Washington DC on October 3-4, 2024, the conference focused on the theme “Risks and Challenges for Public Debt Management: Inflation, Markets, and Climate.”

The event saw robust participation, with over 250 attendees joining both in-person and remotely from across the globe. The conference brought together public debt managers, representatives from international institutions, leading academics, and the authors of 23 papers selected from a pool of 64 submissions. This diverse group engaged in rich discussions, underscoring the importance of blending theoretical research with practical insights.

Key figures from the PDM Network’s founding institutions played pivotal roles as moderators and speakers. Notable participants included Jean Pesme, Global Director of Finance in the Finance, Competitiveness & Innovation (FCI) Global Practice; Carmine Di Noia, Director of the OECD Directorate for Financial and Enterprise Affairs; and Davide Iacovoni, Director-General of the Public Debt Department at the Italian Treasury.

Keynote speaker was Ugo Panizza, Professor of Economics, Department Head, and Pictet Chair in Finance and Development at the Geneva Graduate Institute.

The conference addressed a range of topics, from traditional public debt management issues to contemporary challenges such as the recent surge in inflation, financial market volatility, and the growing impact of climate change. The discussions highlighted the increasing integration of climate considerations into public debt management strategies.

Overall, the conference successfully fostered a valuable exchange of ideas between academia, institutions, and market practitioners, reinforcing the critical role of collaborative efforts in navigating the complex landscape of public debt management.

PROGRAMME

Thursday, October 3^rd

Word from the organization committee

Lars Jessen, Lead Debt Specialist, The World Bank (Speech)

Opening remarks (Video)

Frederico Gil Sander, Practice Manager, The World Bank (Speech)

Session I - Understanding public debt spikes: implications for debt management and debt sustainability (Video)

Chair: Carmine Di Noia, Director for Financial and Enterprise Affairs, OECD

Surges in the Shadows: Stock-Flow Adjustments and Public Debt Spikes (Presentation)
Leandro Andrian, Inter-American Development Bank
Cesar M. Rodriguez, Portland State University
Oscar M. Valencia*, Inter-American Development Bank

Debt Service Spikes and Debt Distress
David Mihalyi, The World Bank
Discussant: Daniel Carvalho Cunha, International Monetary Fund

Linking Climate Shocks and Sovereign Debt Defaults (Presentation)
Aitor Erce, Universidad Pública de Navarra and CERDI (Clermont Ferrand)
Mattia Picarelli, European Stability Mechanism
Diana Zigraiova*, European Stability Mechanism

Dealing with Heterogeneous Bondholders in Sovereign Debt Restructurings
Carlo Galli*, Universidad Carlo III de Madrid, and CEPR
Stephane Guibaud, SciencesPo
Discussant: Anna Gelpern, Georgetown University

KEYNOTE SPEECH (Video)
"Sovereign Debt and Climate Finance: The Role of Contingent Debt Instruments"
Ugo Panizza, Professor of Economics, Department Head, and Pictet Chair in Finance and Development at the Geneva Graduate Institute (Presentation)

Session II - Market dynamics and their impact on public debt management performance (Video)

Chair: Davide Iacovoni, Public Debt Director General, Italian Treasury

Monetary Policy, the Yield Curve, and the Repo Market
Ruggero Jappelli*, Warwik Business School
Loriana Pelizzon, Goethe University Frankfurt
Marti G. Subrahmanyam, New York University

Secondary Market Liquidity: The Role of Repo Market Specialness (Presentation)
Valentina Catapano*, University of Padua and CRIEP
Luciano Greco, University of Padua and CRIEP
Filippo Mormando, CRIEP
Discussant: Marianna Blix, Sveriges Riksbank and National Debt Office, Sweden

Average Interest Cost - A Novel Cost and Risk Measure and its Applications in Public Debt Management (Presentation)  (Paper)
Philipp Sicking*, Federal Republic of Germany – Finance Agency
Achim Kopf, Federal Republic of Germany – Finance Agency 
Christoph Peters, Federal Republic of Germany – Finance Agency
Norman Demuth, Federal Republic of Germany – Finance Agency
Felix Klameth, Federal Republic of Germany – Finance Agency
Tatjana Lemke, Federal Republic of Germany – Finance Agency

Debt for Development Swaps - A Financial Assessment Framework
Diego Rivetti*, The World Bank
David Mihalyi*, The World Bank
Discussant: Lorenzo Forni, University of Padua - Prometeia (Discussion)

PDM Network: Key facts & figures (Presentation)

 

Friday, October 04^th

Session IIIA. - Sovereign debt management strategies in the face of environmental challenges and disaster risks (Video)

Chair: Emiko Todoroki, Acting Practice Manager, The World Bank

Natural Disasters, Sovereign Defaults & Debt Restructurings
Alex W. Dryden, SOAS, University of London

The sovereign Climate Debt Trap and Natural Disaster Clauses
Stephen Park*, University of Connecticut
Tim R. Samples, University of Georgia

The Impacts of Disasters on Capital Flows, International Reserves and Exchange Rates: Implications for Public Sector Financial Risk Management and Development Lenders (Presentation)
Yuen Lo*, London Metropolitan University and SOAS, University of London
Ulrich Volz*, SOAS, University of London
Discussant: Thordur Jonasson, Deputy Division Chief, IMF

Peru's Debt to GDP ratio, Wars and Earthquakes: 1822 - 2022 (Presentation) (Paper)
Favio Leiva, Nagoya University

Multilateral Development Banks as robust climate shocks backstops: The case of the Caribbean Development Bank
Pierre Cailleteau*, Lazard
Leonardo Puppetto*, Lazard
Gabrielle Rousseau*, Lazard
Discussant: Nils Zimmermann, The World Bank

Session IIIB. - Managing inflation and market risks through optimal debt portfolio strategies (Video)

Chair: Fatos Koc, Head of Financial Markets Unit, OECD

Fiscal Sustainability and the Role of Inflation
António Afonso, Universidade de Lisboa
José Alves, Universidade de Lisboa
Olegs Matvejevs, Latvijas Banka
Olegs Tkacevs, Latvijas Banka

Inflation-Linked Bonds are not a good Instrument for Financing Government Debt in Emerging and Developing Economies: A View from Risk-Return Analysis (Presentation) (Paper)
Ruurd Brouwer*, TCX Investment Management
Victoria Petrenko, OGResearch
David Vavra*, OGResearch

Does the creation of a sovereign inflation-linked bond market (information) reduce the domestic financing risk? The interplay between term premium and the demand for government securities
Daniel Carvalho Cunha*, International Monetary Fund
Dimitris Drakopoulos, International Monetary Fund
Discussant: Alvaro Pina, OECD

Does the creation of a sovereign inflation-linked bond market (information) reduce the domestic financing risk? The interplay between term premium and the demand for government securities
Daniel Carvalho Cunha*, International Monetary Fund
Dimitris Drakopoulos, International Monetary Fund
Discussant: Alvaro Pina, OECD

The Dynamic Canadian Debt Strategy Model (Presentation) (Paper)
Nicolas Audet, Bank of Canada
Joe Ning*, Bank of Canada

An Analytical Framework for Public Debt Management (Presentation) (Paper)
Jean-Paul Renne, University of Lausanne
Discussant: Leandro Andrian, Inter-American Development Bank

Session IV - Climate change and public debt: sustainable strategies and emerging markets insights (Video)

Chair: Frederico Gil Sander, Practice Manager, The World Bank

The Impact of the Creation of a Sovereign ESG Reference Yeld Curve on Corporate ESG Bonds Issuances from Latin America and the Caribbean (Presentation) (Paper)
Daniel Cunha, IMF
Giovanna Craveiro*, Brazilian Treasury 
Marina Rossi, Brazilian Treasury 

ESG budgeting and the next generation of sustainable bonds (Paper)
Bence Lukács, Hungarian Government Debt Management Agency (AKK)
Bebes András*, Hungarian Government Debt Management Agency (AKK) 

Asymmetric Sovereign Risk: Implications for Climate Change Preparation (Presentation)
Jose E. Gomez-Gonzalez, City University of New York - Lehman College
Jorge M. Uribe, Universidad de Barcelona
Oscar M. Valencia*, Inter-American Development Bank
Discussant: Elisabetta Cervone, Italian Treasury (Discussion)

Climate Shocks and Sovereign Bonds in Africa: Understanding the Climate Risks to African Sovereign Debt (Presentation) 
Nadia S. Ouedraogo, United Nations Economic Commission for Africa (UNECA)

Mobilizing Private Finance for the Climate Agenda: Introducing Sustainability-Linked Intermediated Debt Instruments (SLIDIs) (Presentation) (Paper)
Marcello Estevão, Institute of International Finance
Nils 'Jasper' Zimmermann*, The World Bank
Stephen Stretton*, The World Bank
Discussant: Layna Mosley, Princeton University (Discussion)

Closing remarks

Jean Pesme, Global Director, Finance, The World Bank (Speech)