World Bank warns African countries on high debt profile

World Bank wants developing countries to adopt effective Debt Management Performance Assessment Tool (DeMPA) to enhance clarity between monetary policy implementation and debt management for sustainable growth, stressing that domestic capital markets are fragile in low income countries in the West African region.

A representative of World Bank, Lilia Razlog, made this known while addressing participants at the opening ceremony of a regional training on DeMPA, organised by World Bank in collaboration with West African Institute for Financial and Economic Management (WAIFEM) in Lagos.

“DeMPA is important tool to give banks and governments modern skills for effective debt management for economic stability. The skills from DeMPA will improve developing countries in debt management to boost growth rate.

The methodology of debt management was developed by World Bank with international institutions to help various countries in efficient debt management and about 60 countries have applied this methodology effectively”, she said.

In his keynote address, the Director General of WAIFEM, Akpan Ekpo, explained that governments in low income countries faced a complex array of competing economic and policy demands in seeking to improve the lives of their citizens, saying  citizens of these countries seek additional and improved services in infrastructure, education, health care, electricity, social justice and security among others, as well as more efficient and equitable systems of taxation.