Sovereign Financing is crucial to finance infrastructure and develop sustainable market friendly growth structures.
Together with overall macroeconomic policy, debt management policy plays an important role in ensuring and maintaining long-term debt sustainability. But it is not the only factor to be taken into consideration according to Prof. Stiglitz.
Regettably, the current status of external debt management in the heavily indebted poor countries (HIPCs) - and other countries - using the results of a recent survey of the HIPCs and the main providers of technical assistance on external debt management together with the assessment by IMF and Worldbank staff, allows identifying mayor weaknesses in:
- external debt management capacity,
- priority areas for further improvement, and
- the role of key international agencies involved in technical assistance and capacity building.
- capital flow
- the role of the Development Banks.
The survey covered key aspects of external debt management, namely legal and institutional aspects, coordination with macroeconomic policies, new borrowing policy, and basic debt management functions, including human and technical resources.