Ministry of Finance to use new tools for better public debt monitoring

Cyprus Ministry of Finance acquires new tools towards a more effective monitoring of public debt.

The Ministry of Finance intends to issue a tender for the hiring of consultants to conduct a Debt Sustainability Analysis (DSA), and has also introduced the Commonwealth Secretariat – Debt Recording and Management System, that helps in a more efficient medium- term tracking of the Republic’s debt. To proceed with these project, the Finance Ministry has submitted to the Parliamentary Finance Committee a request to release a fund of € 90,000.

Head of the Economic Research and European Union Affairs Directorate, of the Ministry of Finance George Panteli told CNA that an analysis conducted by an independent body will have more weight, in comparison to the sustainability analysis currently conducted by the Ministry of Finance.

This analysis will be updated annually, he added, so as to take into account the change in the financial data, macroeconomic forecasts, as well as external factors. He also pointed out that based on that analysis, the state could tap the markets and borrow on favorable terms, if data are good.

According to Panteli if the House approves the release of the fund, the Finance Ministry will launch a tender for hiring a consultant, preferably from abroad, to conduct the analysis. The fund for the DSA has been set at € 80,000.

Moreover, the Public Debt Management Office has secured free of charge, the Debt Recording and Management System (CS-DRMS) by the Secretariat of the Commonwealth.

“We are acquiring another tool for monitoring the progress of the government debt, to do a better job in terms of design and implementation of the medium-term strategy,” told CNA Head of Public Debt Management Office Phaidon Kalozois.

The software, as he said, was included in the 5-year action plan for further strengthening of the Office`s infrastructure and for the preparation of a medium-term strategy of public debt management established during Cyprus` Memorandum with the international lenders and with the technical assistance of International Monetary Fund, European Stability Mechanism and World Bank.

The software will help the Finance Ministry to ensure that the financial needs of the Republic are always met on time, at the lowest possible cost and with an acceptable level of financial risks.

source: CNA