nominal value of a debt instrument could be more than originally advanced because, for example, of the accrual of interest costs. appropriate valuation of debt instruments such as loans would minimize incidence of disagreements between the debtor country and the international community over the magnitude of the country ’ s external debt exposure. ladies and gentlemen, benefits of quality debt data good quality and comparable external debt data would flow from rigorous application of the principles of debt data compilation. to compromise them risks potential economic costs in terms of vulnerability of the country to solvency and liquidity risks associated with meeting the “ true ” current and future payments obligations. for instance, the quantum and composition of external debt needs to be measured, valued and monitored in line with best practices. this fosters portfolio optimization and scenario analysis but also identifies potential variability in debt service costs and such other indicators of external vulnerability, notably changes in external prices and terms of trade. also, good quality data fed into a recording system such as the cs - drms would maximize the gains from the use of such a system for improved debt management. at this juncture, let me take the liberty to highlight the institutional arrangements for sound debt management in sierra leone. 3. 0 institutional arrangement for debt management in sierra leone public debt management in sierra leone is governed mainly by the 1991 constitution and the loan amendments act of 1992 which vest the responsibility for contracting loans in the ministry of finance ( mof ). however, the ministry and bank of sierra leone ( bosl ) work closely in the execution of the debt management function, namely, loan negotiations, renegotiations, disbursement, amortizations and recording. while the mof undertakes the policy function in terms of formulation of debt policies, strategies and implementation consistent with the macroeconomic and fiscal framework of the country, the bosl maintains the database, prepares the foreign exchange cash flow budget, including debt service obligations. this framework has contributed significantly to improving debt management in the country. we will strive to improve on it. indeed, the framework enhances coordination of the debt management function by the appropriate authorities. ladies and gentlemen, like most developing countries, sierra leone has been facing a number of problems, particularly those relating to maintenance of quality debt data. these include inadequate resourcing of statistics generating units ; low priority attached to data collection ; and inefficient institutional arrangements for data collection, processing and dissemination. others include gaps in data recording ; and gaps in debt recording systems. i

mohamed s fofana : bank of sierra leone charity trust fund keynote address by mr mohamed s fofana, deputy governor of the bank of sierra leone, at the scholarship award ceremony of the bank of sierra leone charity trust fund, freetown, 25 january 2008. * * * mr chairman members of the board of trustees of the bank of sierra leone charity trust fund board of directors and management of the bank of sierra leone officials of the ministry of education heads of commercial banks and other financial institutions members of the fourth estate distinguished guests, including the awardees students and pupils it is my honour and privilege to warmly welcome you all to the scholarship award ceremony of the bank of sierra leone charity trust fund. the idea of a charity trust fund was conceived by the bank of sierra leone in the wake of the devastation caused by the decade old civil conflict in every sector of our society, the education sector, being key. we were convinced that the future for a better sierra leone and a decisive turnaround in the state of the economy, lie largely in education taking its rightful place in the development plan. as the nation ’ s central bank, we have a pivotal role to play in the development aspirations of the country. that is why as a corporate body, we have recognised our responsibility in the discharge of our duties to honour our corporate social responsibility. we are therefore doing all in our power to compliment the efforts of the government and other well meaning partners to help foster economic and social development. to this end, our corporate social responsibility is focused on providing a stimulus that will help promote excellence in every aspect of our development, but more so in education. by supporting the education sector, our aim is to achieve the following : • contribute towards the development of the human resource base required to drive economic activities in the country. in this regard, our objective is to open doors leading to abounding opportunities for future generations in our own small way. we hope that by providing for those who have the ability to achieve academic excellence but cannot do so for lack of financial support, we can help restore the academic prowess for which sierra leone was known in the continent. we would therefore assure everyone, not only those in secondary schools, but also institutions and individuals who have the talent and the commitment to demonstrate outstanding performance, that you will get our attention and support, if you are deserving. mr chairman, distinguished guests, ladies and gentlemen, it is only recently that the bank of sierra leone has taken up the responsibility of helping in