Preparing an Annual Borrowing Plan

Oumar Dissou, James Knight, Miriam Tamene, Leandro Secunho and Diego Rivetti

No 2025/012, IMF Technical Notes and Manuals from International Monetary Fund

Abstract: An Annual Borrowing Plan (ABP) guides the short-term execution of a debt management strategy, which typically spans 3–5 years. Emerging market and low-income countries have improved their ability to develop debt management strategy (DMS), they face ongoing implementation challenges. An ABP requires high-frequency data and detailed planning, considering factors like gross financing needs (GFN), seasonal revenue and expenditure patterns, and debt service obligations. Beyond supporting DMS implementation, an ABP offers several benefits: it helps to identify refinancing risks, assess financing feasibility, and detect funding gaps. It also contributes to market development, investor engagement, and transparency. Critically, an ABP links debt management with broader macroeconomic components—fiscal and monetary policy, cash flow forecasting, and market liquidity—making it a cornerstone of sound financial governance. Preparing an ABP involves several steps including: identifying the debt coverage, analyzing GFN, evaluating market conditions, selecting borrowing instruments, and aligning with DMS targets. Once finalized, an ABP should be approved by policymakers and published. While publication details vary by country, a high-level borrowing overview should accompany the national budget, followed by a more detailed version. An issuance calendar should also be published for government securities.

Keywords: annual borrowing plan; issuance calendar; debt financing strategy; loans; government debt planning; government cash management; government debt management; bonds; government securities; Treasury bills and bonds; debt management; public debt; domestic debt; financial markets; yield curve; market interest rates; immunities ofThe World Bank; IMF Library; borrowing plan; granular ABP; member country government; debt management unit; plan tool; Budget planning and preparation; West Africa; Caribbean (search for similar items in EconPapers)
Pages: 43
Date: 2025-09-16
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