Government Debt and Infrastructure Finance

The mission of the Government Debt and Infrastructure Finance (GDIF) Program is twofold.  First, GDIF helps host countries implement sound public debt management practices and develop domestic debt markets through which the government can predictably finance itself within acceptable cost and risk parameters. Robust domestic government debt markets support political and fiscal stability, monetary policy transmission, and broader capital market development for sub-national and private sector issuers and investors.  GDIF sovereign debt advisors assist counterpart officials in implementing important objectives:

  •   Strengthening the legal and regulatory framework for sovereign debt management and issuance;
  •  Building institutional and staff capacity to issue and manage public debt through market- friendly mechanisms;
  • Adopting comprehensive debt management and funding policies and strategies;
  • Creating a broader range of financing instruments and sources to fund the government's budgetary and capital investment needs, while providing local investors safe instruments for their savings; and
  • Designing and implementing securities issuance, trading and settlement mechanisms that support financial market safety, transparency, efficiency, and liquidity

The graphic below illustrates the various components involved in developing domestic financial markets.  GDIF operates primarily in the lower three tiers of pyramid, which provide the solid foundation for broader capital market development.



Source: International Monetary Fund (IMF)

The second component of GDIF’s mission is to assist host countries to develop and finance basic infrastructure, such as transportation, public safety and health facilities, and energy, that is critical to a country’s economic development and quality of life.  GDIF helps build counterpart governments’ capacity to accelerate infrastructure development and apply the most effective approach to the implementation of economically and financially sound infrastructure projects.  GDIF infrastructure finance advisors work with government officials as they: 
·          Strengthen their legal framework and regulatory environment, particularly for public private partnerships;
·          Build and staff an appropriate infrastructure development and management organization;
·          Increase their capability to analyze and manage the fiscal impact of specific project proposals, particularly the impact on debt, contingent liabilities and long-term operating costs;
·          Improve and institutionalize the project development process, including contracting and dispute resolution mechanisms;
·          Enhance interagency and private sector communications; and
·          Attract prospective project investors, concessionaires, and creditors.


Last Updated: 12/8/2014 11:53 AM