"Debt Management Performance Assessment is a methodology for assessing performance through a comprehensive set of 'Debt Management Performance Indicators (DPI's), spanning the full range of government debt management functions". These broad government debt management functions are:
- Governance and Strategy Development
- Coordination with Macroeconomic Policies
- Borrowing and Related Financing Activities
- Cash Flow Forecasting and Cash Balance Management
- Operational Risk Management
- Debt Records and Reporting.
Debt Management Performance Assessment is based on the principles set out in the World Bank-International Monetary Fund Guidelines for Public Debt Management (2001, 2014).
The indicator set is intended to be an internationally recognized standard in the government debt management field and may be applied in all developing countries.
Debt Management Performance Assessment is modeled after the Public Expenditure and Financial Accountability (PEFA) indicators. It is a more comprehensive assessment of government debt management than Public Expenditure and Financial Accountability.
The two frameworks are complementary: the Debt Management Performance Assessment can be used to undertake a detailed assessment of the underlying factors leading to poor 'Public Expenditure and Financial Accountability ratings in the area of debt management;
Alternatively, if the Debt Management Performance Assessment' exercise precedes a Public Expenditure and Financial Accountability assessment, the latter can use the Debt Management Performance Assessment results to inform its assessment of the relevant indicators. Notably, a DeMPA for sub-national governments has also been developed and is being applied.
The objectives of the Debt Management Performance Assessment tool are to:
- Assess public debt management performance capacity.
- Monitor performance over time through repeated assessments.
- Enable design of debt management reform program.
- Foster donor harmonization based on common understanding of priorities.
