UNCTAD's Debt Management and Financial Analysis System (DMFAS

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After data validation, the database should contain reliable information that debt officers canuse for their reporting needs. DMFAS Report section meets both the internal and externalreporting needs of debt officers. For example, DMFAS supports the production of Forms 1and 2 of the Debtor Reporting System (DRS) that the World Bank requires from itsborrowing countries. DMFAS is also capable of generating a wide range of standard andcustomized reports, and data can be transferred easily to Excel and in HTML format.Once the database has been loaded with information from loan, bond and grant contracts,DMFAS becomes a very powerful tool. As the software processes huge amounts ofinformation on a debt, more time and energy can be deployed on analytical tasks. TheAnalysis section enable debt managers to calculate projections based on outstanding and ontotal commitment as well as present values of future debt service obligations. They canquickly analyze the impact on the country’s overall future debt burden resulting fromhypothetical changes in financial markets. DMFAS makes debt service calculations showinghow the total of debt service obligations would be affected by taking on a proposed loan, andprojects the impact of borrowing decisions of various entities on a country’s global debtprofile. The DMFAS installation package also includes the World Bank’s DebtSustainability Model (DSM+) which lets debt managers perform further sophisticatedmacro-economic and balance-of-payment analysis.4
III. Detailed description of DMFAS 5.3 FunctionsA. Recording function1. Types of agreements that can be registered in DMFASDMFAS 5.3 has facilities to register the following types of agreements:Loans. The software can record all loan-typecontracts, including revolving credits and syndicatedloans. It also facilitates the registration ofloans with common characteristics granted tolocal governments or other subnational entities.DMFAS can store quantitative information (suchas financial terms) and qualitative information(such as notes for specific comments ormemorandum items, like the type of legal clausesin the contract).Bonds. The term “bond” is used by DMFAS inits generic sense to cover government “papers”, promissory notes, treasury bills, notes, bonds, – eurobondsthat is, short-, medium- and long-term obligations. The bonds module is designed to handle typical bondconcepts such as yields, discounts, average price, capitalized interest, as well as bi-monthly and weeklypayments.Grants. The module for registration of grants contains the same facilities as the loans module, except forrepayment conditions.Projects. This facility permit easy identification of individual projects and their relationship to debtinstruments and grants financing them, as well as the individual disbursements related to them.On-lent loans. The software can record on-lent loans and their relationship with the original loan.General agreements. The facility permits the user to register frame agreements which are linked to severalindividual credits (and/or grants) and to link these agreements to the individual loans or grants arising fromthem.Reorganization agreements. DMFAS can link bilateral loans with the relevant “Agreed Minutes” and isdesigned to provide supporting data for reorganization negotiations (particularly for Paris Clubnegotiations), to facilitate recording of the reorganized terms received, and to facilitate identification andreporting of reorganized transactions.2. How is this information registered into DMFAS?DMFAS captures financial terms of individual credits as specified in each loan or bond contract. Thecharacteristics to be entered include, among others, principal terms, interest terms and commission terms.On the basis of this information, the system automatically calculates estimated disbursements andamortization tables.Loan (or bond) information is entered on three levels, General information, Tranches (or Series forbonds) and Commissions, in the Administration section. Each loan/bond has one general information5
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UNCTAD's Debt Management and Financial Analysis System (DMFAS

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