The Kuwait Debt Management Department is responsible for the middle office operations of local and international Kuwaiti government debt. Front and back office operations are the responsibility of the Central Bank of Kuwait for locally-issued debt and the KIA for international debt.

The DMD’s responsibilities include, but are not limited to, defining the annual financing strategy, overseeing debt risk management, maintaining the relationship with international bond investors, interacting with international bodies such as credit rating agencies, the IMF and the World Bank. The DMD operates as a department in Kuwait’s Ministry of Finance.
  1. Financing strategy and financing instruments

  2. The DMD is responsible for preparing an annual financing strategy, in the context of a debt management strategy to be presented at the start of every fiscal year to the Debt Management Committee and the Minister of Finance for approval.
  3. Reporting requirements

  4. In addition to the annual financing strategy, and during the course of the fiscal year, the DMD prepares a number of reports such as quarterly updates to the Debt Management Committee, an annual report on debt and risk management and a number of other shorter reports throughout the year.
  5. Market monitoring, rating agencies and investor relations

  6. The DMD monitors GCC and international market conditions in terms of expected issuances, bond trading spreads and overall market sentiment. The DMD is also responsible for maintaining the relationship with international bond investors and for liaising with credit rating agencies, jointly with the Central Bank of Kuwait and the KIA.
  7. Risk management & Legal

  8. One of the key responsibilities of the DMD is to oversee risk management in relation to debt issued by the government of Kuwait. In this regard, the DMD has developed a comprehensive risk management framework and a proprietary Finance & Risk model to assess and monitor debt related risks.
  9. Contingent liabilities

  10. Contingent liabilities of the State of Kuwait is an area the DMD considers to be important. At this point in time, the DMD is at an early stage of collecting and analyzing contingent liabilities.