China Finance Ministry Establishes Debt Management Department to Enhance Government Borrowing Oversight

China's Ministry of Finance has established a new Debt Management Department to consolidate government debt oversight, which was previously fragmented across various divisions. The department is tasked with drafting and implementing policies for managing central and local government debt, overseeing bond issuance and repayment, and preventing hidden debt risks associated with local government financing vehicles. Led by Li Dawei, it includes divisions for general affairs, central and local government debt, issuance and repayment, and monitoring. This move aims to create a long-term government debt management system and enhance fiscal oversight, promoting transparency and economic stability. Similarly, Bangladesh is being advised by an IMF-World Bank mission to establish a unified Debt Management Office to address fragmented debt functions, improve coordination, and implement a centralized debt database and cash flow forecasting mechanism. Both countries are taking strategic steps to strengthen public debt management frameworks amid growing fiscal challenges.