Government Debt Management: A Guidance Note on the Legal Framework

A guide for countries in reviewing, updating and developing their legal framework relating to govenment debt management.

Authors: Arindam Roy and Mike Williams (2010)

In response to demand from member countries in recent years, the debt management programme has been expanded to assist countries through policy advice. Such advisory support relates to various aspects of debt management including institutional arrangements on debt management, the formulation and implementation of debt management strategies and debt market development. One of the central themes of recent assistance to member countries has been the reform and strengthening of institutional arrangements, which is vital to ensure effective and efficient public debt management. In this respect, it is recognised that the legal framework is one of the core components of institutional arrangements influencing prudent debt management. Good legislation promotes good governance, provides strategic direction to borrowing decisions, defines and clarifies roles and responsibilities and supports professionalism.

This guidance note has been developed by the Commonwealth Secretariat in response to a growing need from its member countries to reform their institutional arrangements, including their legal framework for debt management.