investigation theme “impact of the financial crisis on debt management” coordination: canada
TRANSCRIPT
INVESTIGATION THEME
“Impact of the financial crisis on debt management”
Coordination: CANADA
Impact of the financial crisis on debt management
In 2008, Canada proposed to lead an investigation paper on the impact of the financial crisis on debt management.
A brief outline was given by Canada to the Secretariat in 2009.
Since that proposal was made by Canada, the INTOSAI created last year a new task force: the Task Force on Global Financial Crisis (TFGFC).
Task Force and WGPD
Considering the work presently performed by the Task Force Canada has already recommended to the Secretariat
that the investigation theme proposed in 2008 be reconsidered to assess potential overlap between the WGPD paper and the numerous theme papers being prepared by the TFGFC.
The TFGFC should complete its work over the coming months.
Task Force and WGPD
We know that the roles for SAIs is being reviewed and discussed in many of the theme papers presently produced by the TFGFC in the context of the global financial crisis.
The impact on public finance and public debt will likely be reported.
A subgroup has been created to make the link between the TFGFC and the WGPD.
That subgroup might be looking more specifically at public debt issues.
Task Force and WGPD
Canada recommends we postpone the decision to pursue the theme paper proposed by Canada with the support of Brazil until the TFGFC completes its work later this fall.
This will allow the WGPD to reposition the paper and make sure it will be valuable and useful for SAIs.
Based on the work performed by the TFGFC, this could mean the theme paper will be delayed or even cancelled.
Brazil agrees with this strategy
INVESTIGATION THEME
“Information systems related to debt management”
Coordination: BRAZIL
Information systems related to debt management
In our last meeting, Brazil assumed the leadership of the WGPD investigation theme
“Information systems related to debt management”.
The Governmental Macro-evaluation Secretariat, is the unit at the Brazilian SAI responsible for carrying out the technical activities related to our new mission within WGPD.
First steps
Literature review Understand the problem from an overall perspective
Networking Access institutions and professionals
IMF World Bank Unctad
Framework and strategy
Framework and strategy
Goal: To help WGPD develop guidance regarding the audit of
information systems related to debt management that can be useful for all the INTOSAI community
Acknowledgment: Public debt management activities vary considerably
among countries. Thus, requirements for IT systems also vary.
Framework and strategy
Develop guidance to help SAIs to identify their countries debt diversification level
Specify IT system requirements for different country debt diversification level
Develop guidance on what to audit regarding different country debt diversification level
Is this framework useful for other areas related to debt management?
For example, human resources.
Debt management changing role
Increasing Complexity and Choice
Concessional bilateral & multilateral (e.g. IDA)
Limited Domestic: Captive sources Short dated
Domestic market
expansion
International capital markets
Contingent liabilities (risk management)
Integrated risk management
across government
Non-concessional multilateral
Access to derivatives Financial services
for other parts of government
Source: ANDERSON, P. (2005) “The Changing Role of the Public Debt Manager”; June, 2005.
Available at: http://r0.unctad.org/dmfas/docs/Anderson_june2005.pdf.
How to classify?
3 levels of diversification? Low: only bilateral debt Middle: multilateral and domestic market High: risk analysis, complex debt management strategy
What to look at a first glance? Country debt composition Debt market and country insertion
Primary market Secondary market
Approach
Can this approach be useful for other subgroups within WGPD?
Should we go on? Anyone would join?