Header and navigation menu

Page content


In order to minimize cost and risk over the medium to long run, debt managers ensure that their policies and operations are consistent with the development of an efficient government securities market. Developing a government securities market is a complex undertaking that depends on the financial and market system development of each country. The essential pillar in developing a government securities market is a market oriented funding strategy, based on broad market access, transparency, and effective regulatory frameworks.

The objectives of public debt management can be achieved without the excessive conditioning caused by fluctuations of the financial markets only if the public debt manager’s interaction with the markets is supported by adequate technical management, which works daily with the challenges of the markets by using all of the operational and analytical tools available for effective and timely action.

A thorough understanding of primary and secondary markets of public debt by the offices responsible for public debt management, including short term cash flows, represent over time an indispensable force in controlling the level, composition and market distribution of debt and in managing cost-effectively the government's cash balances. Moreover, active debt management is important to contribute to the cost-risk targets and improve the liquidity of the secondary markets.

The markets for government securities remain exposed to vulnerabilities. Fiscal and monetary authorities, as well as multilateral institutions, remain committed to stable and resilient economies and financial systems and to improve the framework for crises management and resolution.