Policymakers need to make strategic decisions concerning borrowing from official sources. Countries are often able to borrow more nonconcessional official money if they wish, but building up a pipeline of good projects takes time. Since bilateral and multilateral agencies usually operate within rolling 3- or 5-year lending programmes it is not usually possible to increase lending quickly. This means that debt managers have to be aware of foreign exchange needs over the medium term, as well as for the current year.
2. Reputation. A country needs to establish a good name in the market. This will depend partly on economic performance and a willingness to change policies. As an example, the Indonesian government has consistently been ready to cut spending, raise revenues or devalue the currency in times of difficulty and consequently can borrow at lower cost than most countries at similar income levels. Also, because international capital markets are segmented, a good reputation in one market does not guarantee such a reputation in another - lenders need to get to know borrowers. Again, the perception that individuals and non-bank financial institutions have of a country's creditworthiness may differ considerably from that of commercial bankers. Gradual access to markets by borrowing on a small scale when money is not urgently needed may help to establish confidence.