The international financial crises have highlighted the risks and vulnerabilities associated with public debt and the need for continuous improvement in debt management and the analysis of financial liabilities. In addition, in many countries the resources required to finance their development strategies have increased, which implies the need to diversify sources of funding while the available financial instruments have become more sophisticated. In view of these developments, the crucial importance of capacity building activities in debt sustainability and strategy has become more evident.
During the last twelve years CEMLA has been actively working in issues related to public debt management and analysis, achieving a reputation and international recognition through the successful implementation of regional and interregional programs, as well as specific projects designed according to country's needs.
Currently CEMLA manage and implement the Public Debt Management Capacity Building Program (PDP) funded by the Swiss State Secretariat for Economic Affairs (SECO). The general objective of the PDP is to provide specific capacity building support in order to maintain sustainability and to improve public debt management in low and lower middle income countries of Latin America and the Caribbean as requested, through the design and implementation of better national debt and financing strategies, and the provision of more effective responses to the impact of the financial crises. Within this framework, the PDP has been providing support since 2012, to Nicaragua, Honduras, Guyana and the Eastern Caribbean region.
In addition, since 2009 CEMLA is part of the Debt Management Facility (DMF) as implementing partner for Latin America and the Caribbean region. The DMF is an international initiative led by the World Bank aimed to strengthen debt management capacity and institutions in developing countries, which first phase finalized in December 2013.
CEMLA is part of DMF Phase II since November 2014, which objective is to strengthen the capacity of eligible member countries to manage debt effectively, so as to enable governments to finance their operation prudently with appropriate cost-risk mix to contribute to macro-economic stability and ensure sustainable debt levels over the long term. This second phase is targeted to the following countries in the region: Bolivia, Dominica, Grenada, Guyana, Haiti, Honduras, Nicaragua, Saint Lucia, and Saint Vincent and the Grenadines. It is important to note that the rest of the countries in the region can also benefit from regional workshops, where officials from central banks and ministries of finance are trained in the latest methodologies related to public debt management and analysis at national and sub-national level.