Adma
 
ADMA presentation
Contents
What is Adma

The Heavily Indebted Poor Countries (HIPC) initiative aims to give deeper debt relief to countries distressed by their obligations.

The first topic of HIPC initiative implementation is to calculate the country's debt in net present value.
ADMA does these calculations, debt by debt and aggregates all the data in a global debt by country and by creditor category.

The second topic of HIPC initiatives (HIPC 1 and HIPC 2) is to proxy the best debt relief path for a country regarding its legal obligations.
ADMA provides all the current caps on debt relief (ODA, Non ODA, London, Lyon or Naples schemes etc.). All these options are automatically calculated according to user's choice. Other cap's options (90 percent for example) can be added.

The third topic of HIPC initiative are their eligibility criteria: debt sustainability ratios and GDP related ratios.
ADMA automatically links a macroeconomic table to debt service before and after alleviation.


ADMA's Main Functions

ADMA proposes four main functionalities:
  • Managing debt stock; ;
  • Automating debt service projections; ;
  • Service reduction simulations; ;
  • Measuring debt-service impact in relation to macro-economic indicators. ;
Managing Debt Stock

ADMA allows debt registration using exhaustive classification details.
Each debt is linked to:
  • A debt category;
  • A fiscal year;
  • A creditor;
  • A debtor;
  • A currency;
  • A sovereign status;
  • A fixed or variable interest rate (with spread);

  • Each of the above entities is stored independently, items can be updated and / or added simply and without limits;
  • Creditors are classified by category and country;
  • Debtors are linked to budgetary accounts;
  • Exchange rates and discount rates history can be maintained independently for each currency;
  • All amounts are automatically converted to the used-defined 'reference' currency (USD by default);
  • Debt payments frequency can be 1, 2, 3, 4, 6 or 12 payments per year;
  • Debts information can be printed in various-form reports using a configurable report-header;
  • The model allows debt outstanding stock monitoring according to user-defined criteria;
  • A statistical chart allows monitoring debt stock repartition by different themes: by currency, by country, by creditor, by creditors category, by debtor. and so on.

Debt service projections

  • ADMA automatically generates per-debt service-sheets according to user-defined modalities (payment period, fixed or variable interest rate).
  • User can also define the source tables to be used for exchange rates, interest rates and discount rates calculations;
  • Present value (global and per term) can be calculated according to one selected number of days per year (360 / 365);
  • Service sheets provide per-term (and per-debt) outstanding stock;
  • Debt services can be compared to evaluate different modalities advantages (in terms of payments and / or in terms of present value);
  • Service-sheets information can be printed by multiple grouping options (using a configurable report-header);
  • Reports include monthly and yearly service terms calendar;
  • A special report prints the global outstanding stock according to user-defined criteria.
  • All information can be exported to other applications (example: MS Excel);

Service reduction simulations

ADMA allows the user to create an unlimited number of Service Reduction Simulation Sheets.
Each sheet is based on one of the standard rescheduling options (Paris Club, London Club,);

A very simple interface allows the user to:
  • Select the rescheduling option;
  • Select the desired consolidation period;
  • Select the debts to be taken into account;
  • Select the debts that will present the 'Global Service';
  • Execute the simulation.

A Service Reduction Simulation Sheet allows the user to measure the rescheduling impact on the selected debts service, and on the global debt service (in terms of payments and in terms of present value for both cases).
  • Each simulation sheet can be presented in various manners (list of terms before/after rescheduling, comparison charts, ..);
  • Unlimited number of external documents (example: MS Excel sheets, MS Word documents,..) can be linked to each simulation sheet;
  • Simulation information can be printed using a special report;
  • All information can be exported to other applications (example: MS Excel);

Debt Sustainability Sheets
Measuring debt service impact in relation to macro-economic indicators

At this level, ADMA allows the user to calculate (and control, in terms of debt-service) the financial Gap of global macro-economic indicators.

A debt sustainability sheet can be obtained using the following simple steps:
  • User creates and maintains macro-economic sheets (unlimited number);
  • Each macro-economic sheet, contains a list of yearly information about:
    • GDP
    • Expenditures
    • Receipts
    • Reserves
    • Debt-service arrears
  • Debt Sustainability Sheet, can then be obtained in two steps:
  • Select one of the previously created macro-economic sheets;
  • Click the Refresh button to calculate the sustainability table (producing the Gap);
  • User can then decide to test New borrowings impact:
    • Click New Borrowing;
    • Enter New Borrowing debts;
    • Generate New Borrowing Service;
    • Click the Refresh button to recalculate the impact of new-borrowing service on the sustainability sheet;
  • It is also possible to integrate one of the previously created Service-Reduction Simulation Sheets to measure the simulation's resultant debt-service impact:
    • Select the service-reduction simulation sheet;
    • Click the Refresh button.