The Commonwealth’s flagship debt management system is set to play a “catalytic role” in facilitating Cyprus’s public debt management operations, one of the country’s chief officials has said.
Mr Phaedon Kalozois, Director of Public Debt Management Office (PDMO) at Cyprus’ Ministry of Finance, today confirmed that the country will be adopting the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS). The Eastern Mediterranean nation is the 62nd country to adopt the technology since its inception.
“The Government of Cyprus aims at tapping into the specialist expertise of the Commonwealth Secretariat for the design of an effective medium-term debt strategy, elaboration of an annual financing plan as well as producing high quality information for reporting and investor relationship management,” Mr Kalozois said.
Concerns around sovereign (or public) debt management capabilities have rocked stock markets and governments around the world in recent times. Debt has become an even greater challenge for finance ministries and central banks as they come to terms with receding and emerging global economic crises.
CS-DRMS is currently used by over 100 agencies including Ministries of Finance, Treasuries and central banks. It is offered as part of the Commonwealth’s flagship debt management programme, which also includes advocacy, policy advice, support with formulating debt management strategies and capacity building initiatives.
The programme is expected to help the Cypriot Ministry of Finance to ensure the financing needs of the republic are always met in time, at the lowest cost possible and at an acceptable level of risk.
The country is classified as a high-income economy ($12,736 or more) by The World Bank; and according to official figures, the total Cypriot central government debt currently stands at €18.83 bn.
“Cyprus expects to maximize staff efficiency and minimise intrinsic operational risks in managing public debt through the effective use of CS-DRMS,” Mr. Kalozois said.
Pamella McLaren, Head of the Commonwealth Debt Management Unit, described the CS-DRMS as a “highly valued” system. An independent evaluation revealed that the software has become an indispensable tool for many countries, greatly increasing the efficiency of their work and quality of their debt data and remains a living example of a public good developed by the Secretariat.
She said: “CS-DRMS is a manifestation of best practice in public debt management and is instrumental in supporting the day-to-day operations of public debt management. It has been growing in popularity beyond the Commonwealth boundaries, and is used by 16 non-member countries, including Afghanistan, Kosovo and Liberia. It is currently managing a global portfolio of over US$ 2.5 trillion of public debt and demand for the system is anticipated to continue rising.”