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The Medium-Term Debt Management Strategy (MTDS) is a framework developed by the World Bank and IMF to guide the debt management decisions and operations of government authorities. The MTDS links borrowing with macroeconomic policy; helps countries maintain sustainable levels of debt; and facilitates domestic debt market development.

Debt managers are responsible for raising the funding a government needs at the lowest possible cost over the medium- to long-run, consistent with a prudent degree of risk. The MTDS outlines how the government intends to borrow and manage its debt to achieve a portfolio that reflect its cost and risk preferences, while meeting financing needs.

Implementing an MTDS helps governments manage risk exposures arising from its debt portfolio, reduce macro-financial risks, reinforces fiscal policy and supports the development of a functioning government securities market.

Countries with Current Medium-Term Debt Management Strategies*

*The documents in this list are published and maintained by governments. This list will be updated annually. (Last update occurred in April 2024.) The publication of a Medium-Term Debt Management Strategy is assessed as part of the Debt Reporting Heat Map.

Methodology

The MTDS framework consists of an eight-step methodology, supported by an analytical tool, which enables governments to assess the potential cost and risk trade-offs they may face under different debt management strategies. The MTDS framework covers:

• the objectives and scope of debt management;
• the characteristics of the existing debt portfolio and the identification of risk priorities;
• the sources of potential domestic and external financing; the macroeconomic framework and structural factors;
• baseline pricing assumptions and shock scenarios; and the comparison of alternative funding strategies based on estimates of cost and risk.

Delivery

Through the Debt Management Facility, ľ¹ÏÓ°Ôº and IMF have provided over 100 bilateral technical assistance missions on the MTDS since 2008. This technical assistance has been complemented by regional, international, and online training.  

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Publication: The Medium-Term Debt Management Strategy (MTDS): An Assessment of Recent Capacity Building

This publication looks at the 10 years of MTDS and how it has been adapted to function in a more complex international environment.