DEBT MANAGEMENT OBJECTIVES
The main debt management objective is to minimize the financial cost of the public debt while maintaining the market and operational risks at an acceptable level, taking into account the general objectives of the fiscal and monetary policies. To achieve this, the Division is challenged to pursue rigorously the following six (6) broad objectives:
- Resource mobilization
Raise adequate levels of funding to meet government’s financing needs at a minimum cost and prudent level of risk - Policy
Pursue prudent debt management strategies and policies to maintain public debt sustainability - Research and Analysis
Develop and strengthen research as a continuous tool to explore contemporary innovations in raising funds and to facilitate analysis and design of appropriate debt management policies and strategies - Operational framework
Develop relevant systems, procedures and controls to improve operational efficiency and minimize risk within a framework of comprehensive business continuity plan - Staff development
Attract, maintain and promote the needed skill mix of professionals within a comprehensive and systematic capacity development programme to confront the challenges in aid and debt management - Client service
Promote satisfactory and improved client relationships
CORE VALUES OF THE DIVISION
The Division intends to achieve the above objectives by observing the following core values:
- Transparency
- Accountability
- Team Work
- Integrity
- Efficiency
- Excellence and
- Dedication.
FUNCTIONS OF DEBT MANAGEMENT
The functions of the Division are to be restructured under the following broad categories:
BACK OFFICE FUNCTIONS
- Building and maintaining a comprehensive central external and domestic debt database
- Implementing Ghana’s aid and debt management objectives, policies and strategies
- Monitoring the overall utilisation of aid with the view to improving aid absorption capacity
- Managing loans “on-lent” and ensure timely recovery of debt repayment &
- Implementing Ghana’s Debt Relief Initiatives, debt reorganisation and restructuring
MIDDLE OFFICE FUNCTIONS
- Advising on suitable sources of funding for government projects and programmes
- Formulation, implementation and updating the country’s debt management objectives policies and strategies
- Carry out regular analysis of the public debt portfolio and provide appropriate advice
- Designing and implementing the overall risk management strategies
- Evaluating loan proposals
FRONT OFFICE FUNCTIONS
- Assist in negotiating prudent terms and conditions for new financing commitments
- Negotiate debt refinancing, reorganization, rescheduling and/or restructuring
- Investor and Development partners’ relations
CURRENT SCOPE OF OPERATION
The Division currently manages the total public debt which includes all financial obligations over which Government exercises direct and indirect control.
In this regard, the Division manages and reports on direct government debt and guaranteed debt which may be categorised into but not limited to, direct government to government loans (also known as bilateral loans), multilateral loans, trade credits (include; Letters of Credit, Promissory Notes, etc), commercial loans, other structured financing facilities and all forms of grant with maturities spanning from short term (usually one year or less), medium (more than a year but less than five years) to long term (five years and more).
TARGETED SCOPE OF OPERATION
In addition to the current scope, the ADMD intends to capture all implicit and explicit contingent liabilities. These should include:
- All forms/types of publicly guaranteed and non-guarantee external private debt.
- The targeted instrument of coverage will also be extended to include other sophisticated operations like credit and commodity derivatives, financial leasing, and trading commercial papers.