Unlocking the Potential of Active Debt Management

Following the post-pandemic surge in debt, compounded by tighter global financial conditions, low-income countries are projected to pay over $35 billion in debt service every year in the coming years. Most debt management offices focus on upcoming payments and future borrowing, seldom seeking to improve existing debt terms—often acting too late when pressures rise. In contrast, most advanced economies—and a few emerging ones—regularly use tools such as debt buybacks, swaps, or currency and interest rate hedging to cut costs and reduce risks.

The Debt Management Impact Program helps debt management offices (DMOs) shift from a passive to an active approach.

It provides hands-on technical assistance, peer learning, and tailored advisory support so countries can manage their public debt more strategically — saving money, reducing risk, and strengthening market confidence. Each participating country receives targeted support from World Bank Group experts and partners to apply practical tools—such as liability management operations, hedging, or rating analysis and credit-enhancement operations —directly to their own portfolios.

The Program aims to help countries unlock the full potential of active debt management by:

Building capacity to design and execute cost-saving, risk-reducing transactions;
Strengthening engagement with investors, credit rating agencies, and other partners;
Evaluating the financial benefits of hedging and buybacks;
Ensuring DMOs develop lasting, practical skills to manage their portfolios proactively.

The Program will initially target about a dozen countries transitioning toward more active debt management. Through a series of interactive modules, DMOs will gain practical skills to:

Run liability management operations
Use credit enhancements
Negotiate smarter loan terms
Hedge currency and interest rate risks
Engage proactively with rating agencies

Program Initiation: January- February 2026

Resources: Debt