Debt Recording and Management System (CS-DRMS)

Transcription

1 Debt Recording and Management System (CS-DRMS) a complete solution for sovereign, sub-national and parastatal debt management one step ahead...

2 An integrated solution for managing public debt Government debt is usually a country s largest financial portfolio comprising complex financial structures that can generate substantial risk to a country s financial stability. Sound public debt management will ensure the level and rate of growth of public debt are fundamentally sustainable and the debt structure is not exposed to significant market risks, amongst other risks so that debt can be serviced under a wide range of circumstances. The implementation of computerised management information systems can help countries minimise risks within their debt portfolios and achieve savings through lower debt servicing payments while assisting governments in bringing the debt burden to manageable levels through the analysis of the impact of debt relief and restructuring. The Commonwealth Secretariat is a world leader in the provision of a state-of-the-art software solution for managing sovereign debt the Commonwealth Secretariat Debt Recording and Management System (CS-DRMS). CS-DRMS - a model of best practice CS-DRMS is an integrated tool for recording, monitoring, analysing and reporting public debt which is constantly evolving to match the ways in which debt management is reshaping itself. It is in operation in 59 countries both within and outside the Commonwealth. Its holistic approach offers a wide range of functionalities and a robust, secure and open architecture allowing interfaces with a number of external systems. MTDS Microsoft Excel World Bank Debtor Reporting System CS-DRMS DSA/DSF Securities Auction System Integrated Financial Managment System QEDS, SDDS page two

3 Why CS-DRMS? Loan Details Loan Terms CS-DRMS is a flagship application developed and maintained by the Commonwealth Secretariat as part of its debt management programme. The software is available in both English and French. CS-DRMS integrates into existing systems and is used as a tool to better support the interaction between IT and the business process. It manages any size of portfolio, either small, medium, or large and its modular design means that it can be installed and configured to function independently or across back, middle and front offices. Users are able to auto-generate actual transactions from forecast transactions to reduce the need to capture data manually. Exchange Rates /Interest Rates Macroeconomic Data Inputs PROCESSOR Restructuring Terms Actual Transactions/Bills CS-DRMS: Is a turn-key solution and easy to install Is designed to fit in a wide range of information and communication technology (ICT) frameworks Provides features through Windows based graphical user interface (GUI) to shorten the learning curve Has a context sensitive help for ease of learning Comes with a useful set of forward looking reports Interface - World Bank DRS - IFMIS - QEDS - MTDS - DSA/DSF - Debt Analysis Systems Forecast Outputs - Disbursements - Interest payments - Principal payments - Other payments Analysis Reporting - Operational Reports - Statistical Reports - Analytical Reports - What If Analysis - Scenario and Sensitivity Analysis - Loan Evaluation - Impact of New Borrowing - Portfolio Review System Overview page three

4 CS-DRMS - A Versatile Tool The benefits of adopting CS-DRMS are numerous: Recording: Comprehensive coverage of the loan cycle, from loan negotiation to maturity Comprehensive coverage of a wide variety of debt instruments Compliant with international best standards for debt data compilation Attach and view documents within the application Use of data entry sheets to facilitate accurate data recording Holistic view of instrument data (seamless navigation from instrument details to transactions) Ability to export data to other applications Analysis: Provide comprehensive cash flow forecasting of entire future horizon Ability to create user specific scenarios Ability to compare results of different sensitivity under various scenarios Portfolio snapshot of key debt indicators including forward looking risk indicators Easy export of debt data that supports the debt management analytical tools like Medium Term Debt Strategy (MTDS), Debt Sustainability Analysis (DSA)/Debt Sustainability Framework (DSF) Use of graphical features to enhance interpretation of results Reporting: More than 150 standard reports to meet a wide variety of reporting requirements Generate operational, analytical and statistical reports Reporting on internationally accepted practices such as IMF s Special Data Dissemination Standard (SDDS), Quarterly External Debt Statistics (QEDS) and World Bank s Debtor Reporting System (DRS) Produce reports covering the entire period of the instrument (historical as well as forecast) Ability to generate reports covering the entire portfolio Use of filters to control report content View different reports simultaneously Ability to export to other applications (Excel) Report writing tool for developing country specific reports Ongoing support: Our service does not end with the installation, but continues through: The provision of online support through dedicated channel [email protected] The release of software patches which can be downloaded from the CS-DRMS dedicated website ( A knowledge base and discussion forum on the CS-DRMS website A facility for users to send support requests by from within CS-DRMS A remote helpdesk facility that allows the CS-DRMS team to remotely connect to a client s system over the internet for different levels of intervention Latest news and developments provided on CS-DRMS website Periodic newsletters highlighting topical debt management issues, amongst others Training Our Debt Management training includes the following: Using CS-DRMS for debt management Debt data recording and validation Loan negotiation and evaluation Debt portfolio review Debt Analysis and Strategy Formulation page four

5 Recording Recording of instruments in CS-DRMS is modelled around the instrument cycle from negotiation to maturity. The actual management of data in CS-DRMS is processed using the instrument processor tool. The tool uses the debt data and exchange and interest rates maintained in the system to calculate current stocks and flows, as well as forecast the stock position and flows. Loans Management The Loans module makes it easy to capture, update and track data and transactions along the complete loan cycle covering: Recording of loan terms and conditions Forecasting of disbursement and debt service flows Capture of actual disbursements and payments Loan Cycle 6 Loan Matures & Paid Off 1 Assessment of Borrowing Needs - Decision to contract debt 2 Signature of the agreement - Loan evaluations - Loan negotiations External Borrowing Short Term Long Term Use of IMF Credit Private Sector Non-Guaranteed Public & Publicly Guaranteed 5 Debt Reorganisation - DOD reduces over time - Enhancements - Prepayments - Conversions - Write-offs Loan Cycle 4 Debt Servicing - Principal payments - Interest and other fees payment 3 Utilisation of loan - Commitment Fees - Disbursements - Interest and other fees - Cancellations Multilateral Official Creditors Bilateral Private Creditors Commercial Banks Bond Investors Others page five

6 Securities Management The Securities module allows capture of a wide range of domestic and external debt securities covering: Treasury Bills Bonds (zero and fixed coupon, floating rate, indexed, stepped, perpetual, annuity, savings, etc.) Tax/Reserve Certificates Promissory Notes Commercial Papers Securities Cycle Recording of securities in CS-DRMS adopts a three level structured style covering instrument, tranche and bid details. A facility is also provided to electronically populate the database on securities with details from sources such as the Commonwealth Secretariat-Securities Auction System (CS-SAS) and other auctioning systems used by countries. The module allows users to: Record securities details Generate debt service forecasts Auto generate actuals Restructure debt using a Restructuring Wizard, which can handle: Buyback Split Strips Switch Domestic Debt Announcement of Budget Estimates/Funding Requirements Long Term Short Term Deciding on Security Structure Preparation of Annual Borrowing Program and Auctioning Calendar by DMO/CB Traded Instruments Non Traded Non Traded Traded Instruments Auctioning Treasury Stocks Loans Central Bank Advances Treasury Bills Settlement of Issuance Treasury Bonds Tax/Reserve Certificates Domestic Arrears Others Coupon Payments Treasury Notes Others Tax/Reserve Certificates Redemption Others Others page six

7 Loans and Securities Recording Screens Securities Recording Details Payments Actual and Forecast Restructuring of Securities Securities recording Yields and Prices Loan/Grant details Loan repayment terms page seven

8 Grants Management CS-DRMS can also be used for recording and managing aid provided through financial grants. The facility enables monitoring of disbursements provided through the grant. Features include: Recording of grant details Forecasting of disbursement Capture of actual disbursements Monitoring Disbursements The Disbursement and Projects module offers facilities for recording and tracking various types of disbursements for project implementation. The module is a potential gateway between CS- DRMS and other public sector financial management systems. This module allows users to: Capture projects funded by loans and grants Capture government chart of accounts and expenditure line items Model any type of disbursement method (reimbursement, cash advance, direct payment) Track and monitor project expenditures throughout their lifecycle Produce debt reports in budget and chart of accounts format Project details Disbursement methods page eight

9 Analysis Scenario and Sensitivity Analysis CS-DRMS incorporates a powerful analytical tool designed to assist debt managers to conduct debt analysis and portfolio reviews. The debt portfolio can be analysed using alternative economic scenarios with the impact reviewed in comparison with the baseline scenario. The module enables debt analysts and other interested parties to make informed, accurate and prudent decisions on their borrowing strategies and also undertake debt sustainability analysis. Users can: Generate cashflow forecasts for any future projection period Compare new loan offers Assess the cost of new borrowing Examine the impact on the debt portfolio in nominal and present value terms of: Adding new loans Applying debt restructuring options Perform What if? analyses on the debt portfolio by investigating the effects in nominal and present value terms of: Debt restructuring Carrying out sensitivity testing on interest rates, exchange rates and exogenous economic variables under different scenarios Analyse loans in existing debt portfolio to identify high cost loans for prepayment Scenario details Sensitivity testing Portfolio snapshot page nine

10 Reports CS-DRMS provides users with a set of standard reports for operational, analytical, and statistical purposes accessed from both the Loans and Securities Debt modules. These are easy to use and include powerful features for reporting on subsets of the database as well as across the whole portfolio, and for aggregate reporting on a monthly, quarterly and annual basis. The outputs from these reports can be saved and retrieved in a variety of formats including Excel and HTML for publishing on the Web. Reports which can be generated on aggregate as well as instrument-wise basis fall under the following categories: Debt Analysis Portfolio Debt and Risk Indicators International Monetary Fund (IMF) External Debt Statistics Guide Debt Stock and Flows Payments Due/Arrears Debt Restructuring Debt Transaction Instrument Details and Terms The extensive list includes a range specifically designed to conform to the reporting requirements of the External Debt Guide which incorporates best international practices. The Module has the flexibility to allow reports to be generated based on different combinations of filtered data. It also provides options on data presentation (currency, units, reporting periods, etc). CS-DRMS also includes a facility for users to quickly create and run aggregation reports. This provides an easy and effective way of generating a custom-made report on aggregated data. Furthermore, CS-DRMS is shipped with an in-built Report Writing Tool designed to allow users to create their own country specific reports which can be incorporated into the system. Data can also be exported to the IMF/World Bank s Medium Term Debt Strategy (MTDS) framework and Quarterly External Debt Statistics (QEDS). There are automated electronic linkages to the World Bank s Debtor Reporting System (DRS) as well as to the World Bank s DSM+software and International Debt Management s Debt Pro system, for subsequent analysis of debt data within a wider macro-economic context as well as for debt sustainability analysis. Creditory category report Maturity profile report page ten

11 Debt Reorganisation CS-DRMS has a powerful restructuring utility which allows the implementation of various types of debt restructuring facilities including stock and flow operations: Refinancing Write-off Debt conversion including debt relief through the Paris Club, Highly Indebted Poor Country (HIPC) and Multilateral Debt Relief Initiative (MDRI) arrangements Debt restructuring Loan status details page eleven

12 Additional Functionality Monitoring Government Guarantees and (On)lending Agreements CS-DRMS also provides facilities for recording and managing different types of lending/on-lending and guarantee arrangements: Back-to-back lending: where external or domestic debt instrument is passed on to other agencies with the same or varied terms Loan splitting: where one instrument is re-lent to many sub-borrowers as subsidiary loans Pooled Loans: funds are pooled from several debt instruments before being onlent to one or several agencies On-Granting : grants may be passed on to sub-national agencies albeit on concessional terms Guaranteed loans: the recording and monitoring of guaranteed loans help towards the tracking of disbursements and debt service payments by the responsible agencies Simple government loans: government lending from budgetary resources Guarantee Guarantee Guarantee Creditors Creditors On-Lending Central Government Central Government Debt Servicing Credit Debt Servicing Credit Parastatals or Sub-Nationals Parastatals or Sub-Nationals Public or Private Public or Private Sector Enterprise Sector Enterprise Grant/Onlent Loan Debt Servicing Grant/Onlent Loan Credit/Grant Debt Central Servicing Government Creditor Debt Servicing Credit/Grant Central Government page twelve Creditor Debt Servicing

13 Managing Auction of Securities The Securities Auction System (CS-SAS) is another system which allows countries to manage the auctioning of all government securities. Users can conduct their auctions and upload details of successful bids directly into CS-DRMS. This system includes the following features: Auctioning of Treasury Bills, Fixed Coupon Bonds and Floating Rate Bonds Price-based and Yield-based auctions Facility for handling competitive and non-competitive bids Bid-price and Uniform price allocation methodologies Facility for devolvement and underwriting Auctioning for new and existing instruments Decision support reports based on past auctions Auction analysis using historical data Auction details Bid parameters page thirteen

14 System Specifications 1. Operating System CS-DRMS is implemented in a client-server architecture, and can be deployed as a single or multi-user system in the Windows environment. 2. Multiple Database Support One of the key features of the CS-DRMS is its database independence. The CS-DRMS is designed to be adaptable for use on any relational database management system (RDBMS), which is ANSI 92 compliant. CS-DRMS currently supports the following two database products: Microsoft SQL Server and Oracle. 3. User Interface All user interaction with CS-DRMS is via a typical Windows GUI that makes use of drop down menus, buttons, combo boxes, etc. In order to make the application intuitive and easy to use, the GUI conforms as closely as possible to best practice Windows user interface design. 4. Language Independence The software is currently available in both English and French. 5. Reliable and Speedy Support The software comes with dedicated support through a web-based knowledge database, , telephone and fax. In addition, clients can be assisted by qualified technicians who are able (with the client s permission) to remotely log into their systems to resolve problems quickly. 6. Documentation CS-DRMS comes with an in-built context sensitive help. The software is also shipped with a set of comprehensive user guides available in both English and French. Other useful documents are also available to registered users on the CS-DRMS website ( page fourteen

15 About the Commonwealth Secretariat The Commonwealth Secretariat was founded in 1965 as the administrative headquarters of the Commonwealth of Nations, a voluntary association of 53 countries. The members support one another and work together towards agreed goals. For more details visit The Debt Management Section The Debt Management Section (DMS) is part of the Commonwealth Secretariat s Special Advisory Services Division. DMS deals with issues that directly relate to enhancing the capacity of Commonwealth countries for sustained debt management. DMS provides advisory and expert services, with the emphasis on the recording, monitoring, management, and analysis of all categories of debt. For more details visit: Partner Organisations The following partner organisations work very closely with the Commonwealth Secretariat for the successful delivery of the debt management programme and the CS-DRMS product: International Monetary Fund (IMF) World Bank Crown Agents Macro-Economic and Financial Management Institute (MEFMI) West African Institute for Financial and Economic Management (WAIFEM) Eastern Caribbean Central Bank (ECCB) L Organisation Internationale de la Francophonie (OIF) Commonwealth of Learning (COL) Pole Dette Leading Debt Offices like UK Debt Management Office (DMO), South African National Treasury, Brazilian National Treasury, and Hungarian Government Debt Management Agency page fifteen

16 How to acquire CS-DRMS CS-DRMS is provided free of charge to Commonwealth countries, and is sold to non-member countries through Crown Agents, which is an authorised distributor of the software. Member countries of l Organisation Internationale de la Francophonie (OIF) receive the software free of charge through a partnership agreement between Commonwealth Secretariat and the OIF. Commonwealth Countries Debt Management Section Special Advisory Services Division (SASD) Commonwealth Secretariat Marlborough House Pall Mall London SW1Y 5HX United Kingdom Tel: +44 (0) /6437 Fax: +44 (0) [email protected] Non-Commonwealth Countries Debt Management Section Public Finance Management Department Crown Agents St Nicholas House St Nicholas Road Sutton, Surrey SM1 1EL United Kingdom Tel: +44 (0) Fax: +44 (0) [email protected] Printed on 80% recycled paper