Australia Debt Office Urged to Boost Staffing, Lower Cash Buffer

Australia’s sovereign debt manager should bolster staffing and consider lowering its large cash buffer to maintain best-practice as issuances grow, according to an independent Treasury-commissioned review that outlined potential risks to the nation’s funding strategy.

The review of the Australian Office of Financial Management led by former Reserve Bank Deputy Governor Guy Debelle and released Friday found that the agency’s debt program is “highly respected” and effective at meeting the government’s financing needs. However, it warned that the AOFM’s ability to adapt to changing market conditions could be constrained by limited resourcing and recent turnover among senior officials.