Debt Analysis & Risk Management Department (DARMD)

Overview

The Debt Analysis and Risk Management Department (DARMD), which is considered as the Middle Office, is responsible for the development of the medium-and long-term debt strategies aimed at maintaining the costs of government borrowing at its barest minimum and within prudent level of risks. Also is responsible for recording of loan details, inputting the borrowing terms, and recording the actual transactions related to external and domestic debt contracted by the State Government. It is also responsible for maintaining the integrity state debt database, ensuring that data is up-to date.

Other activities of the department include the following:

• To maintain the debt database and provide information that supports the reporting and analytical work of the organization;
• Designing and formulating public debt management policies and strategies;
• Producing Quarterly Domestic Debt Report to Federal Debt Management Office;
• Conducting Debt Sustainability Analysis (DSA) on an annual basis, on the state’s debt portfolio;
• Conducting yearly State Medium-Term Debt Management Strategy (MTDS) for guiding the state on future borrowing.
• Tracking macroeconomic issues and their impact on the activities of the DMO;
• Establishing strong working relationships with other governmental entities with the responsibilities for formulating macroeconomic policies, planning, public investment, cash management, budgeting, monetary policies and balance of payments;
• Conducting periodic analysis on the total public debt stock (domestic and external) and debt flows in specific periods, provide information on the indebtedness to each creditor, while evaluating the nation’s debt composition for each creditor on currency, maturity, and interest-rate basis;
• Conducting debt portfolio risk analysis and reports on portfolio-related risks;

Departmental Structure

The department is headed by the Director and supported by his deputy and two other technical supporting staff who support in conducting the above stated functions state.