Advanced Public Debt Management And Sovereign Risk Assessment Training Course

Introduction

Effective public debt management is critical for ensuring fiscal sustainability, maintaining market confidence, and promoting economic stability. In a rapidly evolving global landscape, governments face mounting challenges such as volatile financial markets, rising interest rates, currency fluctuations, and geopolitical risks. Advanced public debt management strategies and sovereign risk assessments are essential for addressing these complexities, optimizing debt portfolios, and mitigating systemic risks.

The Advanced Public Debt Management and Sovereign Risk Assessment course provides participants with in-depth knowledge and practical tools to design and implement robust debt management frameworks. It covers essential topics such as debt sustainability analysis, sovereign risk management, and market development strategies while addressing emerging issues like climate-related risks and sustainable financing. Participants will explore best practices, case studies, and innovative approaches to managing public debt effectively in diverse economic environments.

Target Audience

This course is tailored for:

• Government Officials: Debt managers, policymakers, and fiscal planners responsible for public debt management.
• Central Bank Professionals: Economists and market operations experts overseeing sovereign debt markets.
• Financial Market Participants: Investors, analysts, and advisors working with government securities.
• Development Agency Representatives: Professionals supporting debt management initiatives in developing economies.
• Academics and Researchers: Scholars studying fiscal policy, sovereign risk, and public finance.

Course Objectives

By the end of this course, participants will:

Understand the Principles of Advanced Debt Management

• Explore the objectives and frameworks for managing public debt portfolios.
• Analyze the balance between cost, risk, and fiscal sustainability in debt strategies.

Evaluate Sovereign Risks and Mitigation Strategies

• Identify and assess key risks, including credit, market, currency, and rollover risks.
• Develop tools and policies for effective risk management and mitigation.

Conduct Debt Sustainability Analysis (DSA)

• Learn to apply advanced DSA frameworks to assess fiscal health and borrowing capacity.
• Integrate sustainability assessments into policy decisions.

Design and Implement Strategic Debt Plans

• Develop medium- and long-term debt management strategies aligned with fiscal objectives.
• Optimize debt portfolios using scenario analysis and advanced risk models.

Address Emerging Trends and Challenges

• Explore the role of green bonds, sustainability-linked financing, and ESG considerations in debt management.
• Adapt strategies to manage debt in volatile and uncertain global conditions.

This course equips professionals with the expertise to navigate the complexities of public debt management and sovereign risk assessment, ensuring economic resilience and fiscal sustainability in an increasingly interconnected and challenging global economy.

Module 1: Fundamentals of Public Debt Management

• Role of public debt in economic development.
• Balancing funding needs with cost and risk considerations.
• Institutional frameworks for debt management.

Module 2: Structure and Composition of Public Debt

• Domestic vs. external debt.
• Fixed-rate vs. floating-rate instruments.
• Short-term vs. long-term maturities.

Module 3: Sovereign Risk Assessment Frameworks

• Credit risk, market risk, and rollover risk.
• Currency and interest rate risks in external debt.
• Political and macroeconomic risks affecting sovereign creditworthiness.

Module 4: Debt Sustainability Analysis (DSA)

• Tools and indicators for debt sustainability.
• Fiscal rules and thresholds for sustainable borrowing.
• Integrating DSA into policy decision-making.

Module 5: Public Debt Market Development

• Building robust domestic debt markets.
• Primary and secondary market structures.
• Role of market participants in debt market development.

Module 6: Strategic Debt Management Planning

• Aligning debt strategies with fiscal and monetary policies.
• Scenario analysis for debt portfolio optimization.
• Monitoring and revising debt strategies periodically.

Module 7: Sovereign Credit Ratings and Their Impact

• Determinants of sovereign credit ratings.
• Impact of ratings on borrowing costs and market access.
• Managing relationships with credit rating agencies.

Module 8: Risk Management in Sovereign Debt Portfolios

• Hedging techniques for currency and interest rate risks.
• Role of derivatives in debt management.
• Contingent liabilities and their implications for sovereign risk.

Module 9: External Debt Management and Borrowing Strategies

• Bilateral, multilateral, and commercial borrowing options.
• Strategies for managing external debt service obligations.
• Risks of over-reliance on external financing.

Module 10: Public Debt Transparency and Reporting

• Standards and best practices for debt reporting.
• Role of public debt audits in enhancing transparency.
• Communicating debt strategies and risks to stakeholders.

Module 11: Public Debt and Fiscal Policy Coordination

• Debt-financed spending and fiscal sustainability.
• Role of fiscal rules in managing public debt.
• Case studies on effective fiscal-debt policy coordination.

Module 12: Crisis Management and Debt Restructuring

• Indicators of debt distress and early warning systems.
• Negotiating and implementing debt restructuring agreements.
• Role of international organizations in debt crisis management.

Module 13: Sovereign Risk in Emerging Markets and Developing Economies

• Vulnerabilities to external shocks and capital flight.
• Managing debt in resource-dependent economies.
• Policies to improve market access for emerging economies.

Module 14: Climate Risks and Sustainable Debt Instruments

• Issuing green bonds and sustainability-linked debt instruments.
• Assessing climate-related risks in sovereign debt portfolios.
• Aligning public debt management with ESG principles.

Module 15: Future Trends in Public Debt Management

• Role of technology in debt management operations (e.g., blockchain).
• Managing debt in a post-COVID-19 global economy.
• Anticipating demographic and geopolitical trends affecting debt dynamics.

Learning Outcomes

By completing this course, participants will:

1. Understand the key principles and objectives of advanced public debt management.
2. Analyze and mitigate risks associated with sovereign debt portfolios.
3. Evaluate debt sustainability and design effective long-term debt strategies.
4. Navigate the challenges of debt transparency, fiscal policy coordination, and market development.
5. Develop crisis management skills for handling debt distress and restructuring.
6. Anticipate future trends and innovations in sovereign risk assessment and public debt management.

This course equips policymakers, financial professionals, and debt managers with the expertise to effectively manage public debt and assess sovereign

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.