Contents
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What is Adma
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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.
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ADMA's Main Functions
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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. ;
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Managing Debt Stock
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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.
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Debt service projections
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- 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);
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Service reduction simulations
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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);
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Debt Sustainability Sheets
Measuring debt service impact in relation to macro-economic indicators
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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.
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