About Debt Management Office
1. Debt Management Office (DMO)
On the basis of the recent decree of the President No. PP-3877 dated 21 July 2018 “On additional measures of diversification external financing resources”, the Debt Management Office (“DMO”) was established within the Ministry of Finance to manage public debt as well as the external borrowing of state-owned enterprises with front, middle and back offices. The main department for cooperation with international financial institutions and interstate financial relations and the Treasury of the Ministry of Finance are key supplementary departments for debt (external and internal) policy and management in Uzbekistan
The debt management function is assigned to the DMO in the Ministry of Finance. It systematically registers and monitors the stock, disbursements, principal and interest payments, interest and exchange rates on public debt and issuance of government guarantees. The DMO believes that its debt recording and monitoring systems are adequate. The DMO regularly generates various reports and calculates various debt ratios (e.g. public and private debt to GDP ratio, public and private debt service to budget revenue/exports/GDP ratio and public debt to budget revenue ratio) and sensitivities for the short and medium term debt to main economic indicators in accordance with recommendations of IMF and World Bank. The DMO conducts sensitivity or “stress test” analysis of external debt in relation to external factors (e.g. exchange and interest rates changes). The Ministry of Finance’s analytical capacity has significantly improved since 2018 by recruiting new specialists and by internal reforms.
As of the date of this Base Prospectus, the Ministry of Finance has been implementing a new Debt Management and Financial Analysis System (“DMFAS”) software. The DMO is currently in transition to modern “DMAFS 220.127.116.11” software developed by UNCTAD. The Ministry of Finance has signed a MOU with the ADB for technical assistance on improving debt management in the amount of U.S.$0.45 million to implement DMFAS from UNCTAD with the objective of the Ministry of Finance recording all public debt data until 1 May 2019. After the completion of this data input, the DMO will be able to keep accounting and reporting of public and publicity guaranteed debt at international standards.
"DEBT MANAGEMENT AND FINANCIAL ANALYSIS SYSTEM" (DMFAS-6) HAS BEEN INSTALLED IN THE MINISTRY OF FINANCE
To enhance efficiency and automate public debt recording, accounting and reporting, Debt Management Office of the Ministry of Finance has installed 6th version of Debt Management and Financial Analysis System (DMFAS-6). This was a joint project with Asian Development Bank (ADB) and the United Nations Conference for Trade and Development (UNCTAD) to increase government capacity through improvement of investment projects and external debt management systems. On 10-19 December 2018, John Barrozo (as part of the UNCTAD technical mission “Installation and maintenance of DMFAS-6”) installed DMFAS-6, conducted seminars, training sessions on its use at the Ministry of Finance. On 10-21 December 2018, Artak Marutyan (as part of the UNCTAD functional mission “Basic functional training on the use of modules of DMFAS-6”) provided basic functional training on DMFAS-6 which included training, testing, data entry and solutions on certain issues whilst using DMFAS-6. Ministry of Finance team has participated in these seminars which served as experience exchange between employees of the Ministry of Finance and UNCTAD. Reference: “DMFAS-6”, which allows the integration of internal and external debt management, including a deep detailed analysis of its condition, is a financial analysis and debt management system created and developed by UNCTAD and mainly used in the Ministries of Finance and the Central Banks globally. It should be emphasized that the "DMFAS-6" is used in 57 countries around the world and in more than 84 financial and economic institutions. In recent years, “DMFAS-6” has successfully helped a number of governments to improve their public debt management capabilities, as well as accounting and analysis of the debt portfolio. Moreover, “DMFAS-6” provides its users with the ability to monitor short, medium and long-term debt, including both internal and external debt, and on-lending operations. The system also allows to manage, monitor and create reports of both private debt and grants. To account for government expenditures, “DMFAS-6” can also be connected to the state integrated system for management of public finance. During the course implementation, it was noted that “DMFAS-6” system can provide detailed analysis of the country's debt portfolio, which helps formulate Medium-term public debt management strategy. It is important to mention that currently the Ministry of Finance is in the process of inputting all data related to government borrowings and government guaranteed debt. This would allow the Ministry of Finance to have world-class accounting and management of public debt. Technical and functional missions have successfully been finalized and key steps to improve of debt management have been agreed. https://www.mf.uz/en/novosti-ministerstva-finansov/3294.html
2. Public External Debt