Debt Management Performance Assessment : Lesotho
From September 21 to September 28, 2012, a joint World Bank and Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) team visited Maseru, Lesotho to undertake a comprehensive assessment of debt management function...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/670641578587952386/Lesotho-Debt-management-performance-assessment http://hdl.handle.net/10986/33213 |
| Summary: | From September 21 to September 28, 2012,
a joint World Bank and Macroeconomic and Financial
Management Institute of Eastern and Southern Africa (MEFMI)
team visited Maseru, Lesotho to undertake a comprehensive
assessment of debt management functions. The team used the
Debt Management Performance Assessment (DeMPA) tool. In the
governance and strategy area, there is a clear delegation to
the minister of finance for borrowing and issuance of
guarantees, but the mechanisms for coordination are not well
developed. The coordination with macroeconomic policies
generally meets the minimum requirements even though there
is no clear separation with monetary operations. Cash
management is not actively conducted despite very large cash
balances in the Central Bank of Lesotho (CBL). There is no
cash flow forecasting and no interest is earned on
government cash balances. Strengths have been identified in
the operational risk management area. There is a duality
requirement for recording of both domestic and external
loans. The debt records are not complete as domestic
guarantees generally are not recorded. The treasury bonds
and bills are recorded by the Public Debt Management
Division (PDMD) with an average lag of three months. |
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