Cash Management

September 23, 2013

Training the Trainers Program Builds Capacity in Bangladesh

Posted by Chita Marzan

With the objective of building capacity in macro-fiscal analysis and cash management in Bangladesh, a training program was conducted by the IMF Fiscal Affairs Department (FAD) and the Bangladesh Ministry of Finance from July 27 to August 5, 2013 in Dhaka. Two training modules were delivered. The module on Macro-fiscal Analysis included topics such as budget and revenue forecasting, fiscal balance and stabilization, debt dynamics, and the use of a statistical software called Econometric Views (E-Views). The Cash Management module included concepts of cash forecasting and the treasury single account, and their application to debt management and budget management.

The course was the second to take place in the country since 2012. A year ago, a first batch of Bangladesh officials mainly from the Ministry of Finance were trained jointly by FAD and the Singapore Training Institute (STI) on similar topics. Following the success of this initiative, the authorities expressed enthusiasm to train more staff in the Ministry, the Bangladesh Central Bank and the Planning Commission.

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February 08, 2013

New FAD Technical Note and Manual: Cash Management and the Relationship Between Treasury and Central Bank

Posted by Renaud Duplay

Cash management is one of the main issues when reforming PFM systems in developing countries. Bad cash management is costly because it hampers budget execution, causes arrears and increases funding costs. For this reason the Fiscal Affairs Department (FAD) has already released two Technical Notes and Manuals (TNMs) on this subject and is now releasing further guidance material. A new TNM, prepared by Mario Pessoa and Mike Williams, expands the review of cash management issues by specifically addressing the relationship between the treasury and the central bank.  

The note was prepared at the request of the Latin American Treasurers' Forum (FOTEGAL) and addresses both institutional and technical issues and is particularly relevant to developing countries. Based on international experience, the TNM describes the modern framework of a formalized relationship between both institutions standing on two key principles:

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October 11, 2007

Public Investment: Good Project Management is an Issue of ...Capital Importance

"Unexpected changes to payment schedules related to capital projects can create significant difficulties for finance officers responsible for cash management" remarks Steven R. Kreklow (*) in his short article ("Capital Project Cash Flow Management") of the August 2007 issue of the Government Finance Review, the membership magazine of the US-based Government Finance Officers Association.

This adverse impact on cash management and more generally budget execution can be mitigated by good budget and project management techniques described in Steven R. Krelow's article.

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