Comparative Analysis of Government Debt Management Strategies in High- and Low-Income Countries
Dr. Mallikarjuna Naik Vadithe
ICSSR Postdoctoral Fellow, Centre for Economics and Social Studies, Hyderabad
Download PDF
http://doi.org/10.37648/ijps.v20i01.025
Abstract
Governments are refinancing large post-pandemic debt stocks into a higher-rate environment. Across the OECD, the interest-payments-to-GDP ratio rose from ~3.0% (2023) to ~3.3% (2024), and refinancing needs are projected at about USD 13 trillion in 2025 (?80% of gross borrowing), reflecting heavier reliance on bills and the retreat of central-bank demand. Developing economies face tighter external finance: in 2023, they paid a record USD 1.4 trillion to service foreign debt, including USD 406 billion in interest, while about 3.4 billion people live in countries spending more on interest than on health or education. These conditions amplify rollover, FX, and market-functioning risks, with sharper constraints in low-income settings.
Keywords:
Public debt; MTDS; DeMPA; debt sustainability; domestic bond markets; concessional finance; liability management; auctions
References
- IMF & World Bank (2014). Revised Guidelines for Public Debt Management.
- World Bank & IMF (2017). Developing a Medium-Term Debt Management Strategy—Guidance Note for Country Authorities.
- World Bank (2015). Debt Management Performance Assessment (DeMPA) Methodology
- IMF–World Bank (2017). Guidance Note on the Bank-Fund Debt Sustainability Framework for Low-Income Countries.
- IMF (2021). Guidance Note on Implementing the Debt Limits Policy in Fund-Supported Programs.
- World Bank (2020–25). IDA Sustainable Development Finance Policy (SDFP).
- OECD (2024–25). Sovereign Borrowing Outlook & Primary Market Surveys.
- UNCTAD (2024–25). A World of Debt (reports and summary).
- World Bank (2024). International Debt Report 2024 (and IDS database).
- U.S. Treasury (2024–25). Quarterly Refunding Statements (buyback launch; cash-management buybacks).
- Japan MoF (2024–25). Debt Management Report; JGB Market Special Participants; Liquidity Enhancement Auctions.
- Brazil National Treasury (2025). Annual Borrowing Plan; ABP Revisions.
- Ghana MoF/IMF (2022–24). Domestic Debt Exchange; IMF Article IV/Program documents.
- Sri Lanka Treasury/IMF (2023–24). Domestic Debt Optimisation; program reviews.
- Zambia IMF/CGD/Reuters (2024). Common Framework restructuring progress and lessons.
