Preparing An Annual Borrowing Plan

Disclaimer: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this Note are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Subject: Asset and liability management, Bonds, Budget planning and preparation, Central bank bills, Currencies, Debt management, Debt market development, Discount rates, Domestic debt, Exchange rates, Financial sector development, Government cash forecasting, Government cash management, Government debt management, Government debt planning, Government securities, Loans, Project loans, Public debt, Short-term interest rates, Syndicated loans, Treasury bills and bonds, Yield Curve, Market interest rates

Keywords: Annual borrowing plan, Bonds, Debt financing strategy, Debt management, Domestic debt, Financial markets, Government cash management, Government debt management, Government debt planning, Government securities, Issuance calendar, Loans, Market interest rates, Public debt, Treasury bills and bonds, Yield curve