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ECONOMIC ANALYSES AND POLICIES

Debt management has clear links with fiscal and monetary policies, as the debt servicing costs have clear implications for the management of fiscal risks. Debt management is also relevant for the conduct of monetary policy, as it influences the composition of assets available to the public in terms of money and government paper, in particular by affecting bank's reserve balances.

Public debt is therefore an important variable in macroeconomic analysis and, in turn, a debt management strategy will be more successful when a consistent macroeconomic policy framework involving fiscal, monetary, exchange rate, capital account and structural policies is in place.

Multilateral financing plays a pivotal role in policy making, by providing conditional concessional resources and advice to borrower countries. One of the significant areas in debt management for emerging countries is the development of domestic bond markets..