A joint mission of the International Monetary Fund (IMF) and the World Bank has recommended the establishment of a unified Debt Management Office (DMO) to strengthen Bangladesh’s public debt framework and reduce fiscal and operational risks.

According to the mission, the country’s debt management functions are currently spread across multiple agencies, resulting in coordination gaps, inconsistent data, and difficulties in formulating a coherent debt strategy.

The recommendation was presented at a workshop titled “Establishing a Debt Management Office,” held on Monday at the Secretariat in Dhaka, the Finance Division said in a press release.

The event was organised under the scheme on Strengthening the Capacity of the Treasury and Debt Management Wing—part of the Strengthening Public Financial Management to Enable Service Delivery (SPFMS) programme.

The mission proposed consolidating all government and government-guaranteed debt functions under the Finance Division, beginning with the restructuring of the Treasury and Debt Management Wing. In the initial phase, the DMO would oversee domestic debt issuance, prepare annual borrowing plans, coordinate auction calendars, assess portfolio risks, and build a unified debt database.

The report also called for a clear legal framework outlining borrowing authority, accountability, and transparency standards.

Specialised staffing was identified as crucial, with the mission recommending professionals skilled in capital markets, pricing, settlement operations, and risk management—sourced from Bangladesh Bank, commercial banks, and the capital market. To retain such talent, the government would need to offer competitive compensation and career development opportunities.

Over the medium term, the DMO could evolve into an autonomous entity with an expanded mandate, including oversight of contingent liabilities and investor relations.

Drawing on international experience since the 1980s, the mission noted that centralised DMOs have helped countries reduce borrowing costs, strengthen fiscal transparency, and separate debt management from monetary policy.

Establishing the DMO in Bangladesh, the mission added, will require political commitment, phased restructuring, modern IT systems, and sustained inter-agency coordination. Once operational, it is expected to enhance market confidence, lower financing costs, and reinforce long-term fiscal stability.

Senior officials from the Finance Division and experts from the IMF and World Bank attended the workshop.