The proposal was presented at a workshop titled “Establishing a Debt Management Office”, held at the Finance Division in the capital’s Secretariat on Monday (3 November).
Representational image of IMF and World Bank. Photo: Collected
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Representational image of IMF and World Bank. Photo: Collected
A joint International Monetary Fund (IMF) and World Bank mission has recommended that Bangladesh establish a unified debt management office to strengthen public debt governance, streamline borrowing operations, and reduce fiscal risks.
The proposal was presented at a workshop titled “Establishing a Debt Management Office”, held at the Finance Division in the capital’s Secretariat on Monday (3 November).
The session was organised under the Scheme on Strengthening the Capacity of Treasury and Debt Management Wing of the Finance Division, part of the Strengthening Public Financial Management to Enable Service Delivery programme.
The IMF-World Bank mission observed that Bangladesh’s current debt management functions are spread across multiple agencies, leading to coordination gaps, inconsistent debt data, and difficulties in implementing a comprehensive debt management strategy, reads a press release.
The mission also noted the absence of a centralised and audited debt database and a formal cash flow forecasting mechanism – both essential for informed and cost-effective borrowing.
In its presentation, they proposed consolidating all government and government-guaranteed debt functions under the Finance Division, starting with the restructuring of the existing Treasury and Debt Management Wing. In the initial phase, the proposed debt management office would manage domestic debt issuance, prepare annual borrowing plans, coordinate auction calendars, assess portfolio risks, and develop an integrated debt database by linking existing systems.
The experts also called for a clear legal framework defining borrowing authority, accountability mechanisms, and transparency standards. To ensure professional operations, they recommended recruiting staff with expertise in capital markets, settlement, and risk management—potentially drawing talent from Bangladesh Bank, commercial banks, and the capital market.
Over the medium term, the debt management office could evolve into a more autonomous agency with expanded responsibilities such as managing contingent liabilities and investor relations. The mission noted that many countries established centralised debt management offices in the 1980s to reduce borrowing costs, strengthen fiscal transparency, and separate debt management from monetary policy operations.
Md Hasanul Matin, additional secretary (Administration, Planning & TDM) of the Finance Division, attended the workshop as the chief guest. The session was presided over by Mohd Rashedul Amin, joint secretary of the Treasury and Debt Management Wing.
The mission, led by Arindam Roy, senior financial sector expert, also included Jens Clausen, Philip RD Anderson, and Per Jonsson.