Finance Ministry seeks better tools to monitor public debt

The Ministry of Finance plans to hire consultants to conduct a Debt Sustainability Analysis (DSA), and has also introduced the Commonwealth Secretariat - Debt Recording and Management System, that helps in a more efficient medium- term tracking of the Republic’s debt. To proceed with these project, the Finance Ministry has submitted to the Parliamentary Finance Committee a request to release funds for EUR 90,000.

George Panteli, Head of the Economic Research and European Union Affairs Directorate at the Ministry of Finance told CNA that an analysis conducted by an independent body will have more weight, in comparison to the sustainability analysis currently conducted by the Ministry of Finance.

This analysis will be updated annually, he added, so as to take into account the change in the financial data, macroeconomic forecasts, as well as external factors. Also, based on that analysis, the state could tap the markets and borrow on favourable terms, if data are good.

According to Panteli, if the House releases the funds, the Finance Ministry will launch a tender to hire a consultant, preferably from abroad, to conduct the analysis.

Moreover, the Public Debt Management Office has secured free of charge, the Debt Recording and Management System (CS-DRMS) from the Secretariat of the Commonwealth.

“We are acquiring another tool for monitoring the progress of the government debt, to do a better job in terms of design and implementation of the medium-term strategy,” said Phaidon Kalozois, Head of Public Debt Management Office.

The software was included in the 5-year action plan for further strengthening of the Office’s infrastructure and for the preparation of a medium-term strategy of public debt management established during Cyprus’ Memorandum with the international lenders and with the technical assistance of International Monetary Fund, European Stability Mechanism and World Bank.