IMF Deliberates Debt Managers’ Quandary

The International Monetary Fund (IMF) and the Spanish Ministry for Economic Affairs and Digital Transformation co-hosted the 19th Public Debt Management Forum to discuss the challenges being faced by debt managers across the world.

The event held in Madrid brought together senior government officials and private sector representatives from 31 advanced and emerging economies to discuss and debate timely issues affecting public debt management.

Titled “Debt in the Time of Turbulence,” the forum addressed the challenges facing debt managers. How can debt managers best rollover public debt and manage foreign exchange exposure during a time of turbulence? What can central bankers and other financial authorities do to restore liquidity when bond markets dysfunction? How can debt managers navigate the unwinding of monetary stimulus as central banks battle inflation while fiscal support is maintained for the vulnerable?

Participants discussed tools that debt managers have to face higher inflation and rising debt servicing costs. Another session discussed the tradeoffs debt managers face in issuing ESG bonds. The last session drew on historical experience to consider the path for countries seeking to restore market access after a crisis.

Secretary General for the Treasury and International Finance, Carlos Cuerpo, opened the Forum by appraising the recent economic trends. Mr. Tobias Adrian, the IMF’s Financial Counsellor and the director of the Monetary and Capital Markets Department, spoke to participants about risks to global financial stability that the IMF monitors continuously. Álvaro López Barceló, Director General of the Treasury and Financial Policy, closed the forum by highlighting the value of public debt management and the takeaways from the conference.

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The co-hosts thanked the Bolsa de Madrid for offering a superb venue for the forum and collaborating in the organization. 

The next IMF Public Debt Management Forum is tentatively planned for 2025 to be co-hosted with Malaysia.