Support for Strengthening Public Debt Management

Closed

The Government's Framework for Economic and Social Reforms recognizes that 'maintaining a stable macroeconomic framework is the first order of reforms essential for achieving the overall reform agenda and that sound public financial management (including public debt management) will be critical to ensuring this. Similarly, ADB's Interim Country Partnership Strategy for Myanmar identifies support for an enabling economic environment as a core priorityincluding support for reforms that focus on fiscal sustainability, macroeconomic stability, and strengthening public finance. In recognition of the urgent need for support in this area within the context of Myanmar's reintegration with the international community and an extensive reform program (and related financing requirements), initial support has been provided under an SSTA approved in 2012 (Improving Fiscal Revenue Mobilization). This has allowed for timely support for critical functionsprimarily focusing on basic capacity building of the foreign exchange and external debt division within the Budget Department in the Ministry of Finance. This initial support, however, is due to end by September 2013. Follow-on support will be needed over the medium term to allow for broader institutional reforms and capacity building necessary for establishment of an effective institutional framework for sound public debt management. This will include support for strengthening of MOF's capacity for debt recording and management through acquisition and operationalization of a modern debt management and recording system and conduct of related capacity building; support will also be needed to more broadly develop the institutional framework and capacity for public debt managementin this regard the TA will support establishment and operationalization of a debt management division within the Treasury Department of MOF which will assume primary responsibility for public debt management, the development of a modern legal and regulatory framework for public debt, and development of domestic market for government securities.