Domestic Financing Strategy
As domestic debt becomes an increasingly important resource mobilisation option for developing countries, it is necessary to analyse the options for restructuring the current domestic debt portfolio and the options for future new issuances.
To assist countries in this area DFI has developed a methodology which enables governments to analyse how best to balance the supply of domestic debt for budget deficit financing and monetary policy implementation, with the demands of the financial market for holding domestic debt intruments. An overview of this methodology is found in Key Issues for Analysing Domestic Debt Sustainability.
To strengthen countries capacity in this area, DFI has developed detailed training materials and manuals,conducted research and analysis and provides advisory services.
