National departments of treasury are the backbone of independent usage of financial resources. Managing sovereign debt is one of their primary tasks. Either in the form of market-based bills (prevalent in developed countries) or in the form of international aid (more prevalent in developing countries), sovereign debt requires handling complex business flows, from mobilization and structuring of the resources to repaying the debt. Traditionally, this has involved a lot of manual processing and custom-built legacy systems.
Goals and Objectives
Sovereign debt strategies are becoming more diverse, with less conventional instruments like derivatives to edge risks, green bonds, catastrophe bonds, and mutual recovery funds, such as the EU MES, that increasingly complement traditional market-based bills and international aid. Such diversified portfolios require more holistic management of debt costs and risks. As a result, IT systems must provide more sophisticated capabilities that enable not only transactional processes, such as debt issuing, repayments and the occasional performance reporting but also decision support for portfolio forecasting, planning, analysis, and reporting.
Hardware: Enterprise hardware and IaaS; Software: Analytics and artificial intelligence, collaborative applications, content workflow and management applications, data management software, and ERM; Services: Consulting and project-orientated services
Use Case Summary
Debt management should be supported by user friendly, secure, and scalable technical capabilities that record and process debt-related transactions such as commitments, disbursements, and debt service payments. Forecast interest and other fees. Analyze costs and risks at the individual instrument and portfolio level.