WAIFEM to develop borrowing plan for West African countries

•Cardoso seeks disclosure of indebtedness absorption strategies

The implementation of Medium-Term Debt Strategies (MTDS) of West African countries is facing challenges, the West African Institute for Financial and Economic Management (WAIFEM) has said, promising to make a yearly borrowing program for the region.

The Director-General of WAIFEM, Baba Musa, said this astatine the opening of determination grooming connected Annual Borrowing Plan (ABP) improvement jointly organised by the World Bank, and International Monetary Fund (IMF), declaring that the applicable implementation of MTDS often presents sizeable challenges.

He said: “While our subordinate countries diligently formulate and update MTDS, the applicable implementation often presents sizeable challenges. This peculiar grooming connected ABP Development is designed to code this contented by providing a structured model for operationalising the MTDS annually.”

In his remarks, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said successful an interconnected world, effectual indebtedness absorption is not conscionable a method workout but a strategical necessity.

He stressed that indebtedness absorption ensures that governments tin concern captious investments successful infrastructure, education, healthcare, and different indispensable services without jeopardising the well-being of aboriginal generations.

While insisting that strengthening nationalist capacities for indebtedness absorption is important for gathering the government’s backing needs some present and successful the aboriginal successful a cost-effective and risk-conscious manner, Cardoso said countries indispensable prioritise gathering a balanced and resilient indebtedness portfolio.

Cardoso advocated the work of indebtedness absorption strategy (DMS), saying: “Publishing the DMS is essential. It demonstrates the government’s unwavering committedness to its fiscal strategy, promoting transparency and accountability successful indebtedness absorption practices. This mitigates capitalist uncertainty and facilitates constructive dialog with creditors, investors and different cardinal stakeholders, including recognition standing agencies, regarding the optimal financing strategy.”

He argued that processing and implementing a robust ABP offers galore benefits specified arsenic communicating the government’s borrowing intentions to home and planetary markets enhancing predictability and fostering capitalist confidence.

Cardoso explained that the ABP besides facilitates proactive hazard absorption by identifying imaginable vulnerabilities specified arsenic refinancing risks oregon vulnerability to circumstantial currencies oregon involvement complaint movements, allowing indebtedness managers to instrumentality pre-emptive measures to mitigate these risks.

He added: “The improvement of the ABP requires adjacent collaboration among assorted stakeholders, including the Ministry of Finance, the Central Bank, and indebtedness absorption agencies. This collaborative process strengthens coordination, enhances coherent decision-making and prevents advertisement hoc borrowing operations, ensuring that borrowing activities align with broader macroeconomic objectives.”

The CBN brag observed that formulating robust DMS and ABP cannot beryllium done successful isolation, saying: “It requires a broad attack involving a well-coordinated organization model for nationalist indebtedness absorption and a unchangeable macroeconomic environment. Strengthening the budgetary process and accounting systems to heighten transparency and accountability is besides essential”.

“Moreover, it is captious to disclose our indebtedness portfolios and borrowing activities routine. This transparency builds spot with investors, creditors, and the public, creating a virtuous rhythm that reduces borrowing costs and promotes businesslike indebtedness management,” helium said.