After reaching completion point, Côte d'Ivoire hosted an IMF/World Bank mission in Abidjan in order to formulate a medium term debt strategy document, with DRI as technical partner. The analysis of the existing debt revealed the challenges of clearing domestic arrears, of recapitalising of public banks and the weight of debt service on the 2013-2015 budget. Simulations led to proposals for a reference strategy, as well as alternative strategies in case of shocks in order to respond to the country's challenges of its development financing programme while securing debt sustainability.

DFI provided support to the Government of Afghanistan and UK DfID in preparing the content and implementation mechanisms for the Tokyo Mutual Accountability Framework, through which Afghanistan and its donors will hold one another responsible for the delivery of promises made at the Tokyo donor conference in July 2012. The main focus of the work was on reducing conditionality levels for Afghanistan, increasing accountability targets for donors, and suggesting strong implementation mechanisms and closer coordination with New Deal initiatives.

MTDS Mission to Cameroon. DFI took part in a joint World Bank/IMF mission to Yaoundé, Cameroonm, to provide Governement and Central Bank officials with assistance in formulating a medium-term debt strategy. The mission focused its training on concepts and notions of debt strategy, the use of strategy formulation tool through applied exercises, and on evaluating costs and risks linked to the existing debt portfolio and those linked to alternative strategies. Results were later presented by participants who were also given a complete tool kit for the formulation of a medium-term debt strategy.

Financed by OIF as part of its support to Francophone Finance Ministers, DFI spoke at the African IMF-World Bank Caucus meeting of Finance Ministers in Kinshasa on the issues of Debt Sustainability – Reviewing the LIC-DSF framework; and Changing the IMF’s Non-Concessional Borrowing Policy. The first presentation is available here and the second here.

France becomes the first country in the European Union to bring in a tax on financial transactions. Launched on 1st August, the 0.2% levy on France’s biggest businesses with a market value in excess of 1 billion Euros is expected to generate 150 million Euros (10%) for development and climate change - a much lower figure than needed to cover current and future development needs. Civil society organisations, however, welcome the step in the right direction but will keep on pushing for an expansion of this tax to derivative products which could generate more substantial amounts to respond to global challenges.

Eurodad member Erlassjahr has released a new paper on how a Fair and Transparent Debt Workout mechanism could work in the case of Zimbabwe, with a concrete step-by-step simulation on how an impartial and fair process would work. The paper can be found here. The case study is based on a step-by-step guide developed by Erlassjahr, which can be found here.

DRI took part in a World Bank mission aimed at producing a reform plan of Burundi’s publicdebt management. The plan focused on 4 priority areas: legal and institutional framework; operational risks; forecast and treasury management and debt management’s publication, analysis and strategy. The action plan and implementation schedule were subsequently shared with the authorities at a results’ dissemination and information sharing session.

A joint World Bank/DRI mission visited Hanoi, Socialist Republic of Vietnam. The objective of the mission was to prepare a reform plan for debt management, and the recommendations were structured around four key areas: institutional arrangements, debt policy and strategy, cash management, and operational risk management. The mission prepared a draft to be submitted to peer reviews and then to the Vietnamese authorities for their comments. A final report is scheduled to be completed by mid-August 2012.

The latest ministerial meeting of the DCF in New York focussed on ways to improve the effectiveness of development cooperation in catalysing domestic resource mobilisation (budget revenue, microfinance), promote sustainable development, improve allocation among countries and sectors, increase quality and results, accelerate progress on accountability and transparency, and maximize the benefits of South-South cooperation. DFI provided key support to the preparation of the Secretary-General’s report on Development Cooperation. DFI’s Director also chaired a video panel discussion on mutual accountability. For other information on the outcome of the DCF click here.

After significant progress was made in the country’s economic management and having satisfied the main requirements, the IMF and the World Bank have approved 4.4 billion USD in debt relief for Côte d’Ivoire under the HIPC Initiative. Although a definite step in the right direction, this will not however solve the issue of debt owed to private creditors and that of new borrowing, as described in Jubilee Debt Campaign's detailed analysis.