debt statistics compiled under international standarts and transition to sna 2008
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Debt Statistics Compiled under International Standarts and Transition to SNA 2008. Eylem VAYVADA DERYA Turkish Treasury Directorate General of Public Finance. National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey - PowerPoint PPT PresentationTRANSCRIPT
T.C. Başbakanlık Hazine Müsteşarlığı Slide 1T.C. Başbakanlık Hazine MüsteşarlığıThe Undersecretariat Of Treasury
T H E U N D E R S E C R E T A R I A T
O F T R E A S U R Y
Debt Statistics Compiled under International Standarts and Transition to SNA 2008
Eylem VAYVADA DERYATurkish Treasury
Directorate General of Public Finance
National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey
10 September 2013
Ankara, Turkey
The Undersecretariat Of Treasury Slide 2
Presentation Plan
The Underseretariat of Turkish Treasury
Treasury’s Debt and Risk Management Policies
Debt statistics compiled for international organizations under SNA93 (ESA95)
New Adjustments Required to Transmit SNA2008 (ESA 2010) in Current Statistics
Things to do for SNA2008 Transformation in Debt Statistics
The Undersecretariat Of Treasury Slide 3
The Underseretariat of Turkish Treasury
Mission to determine the economic policies and in accordance with the
policies set; to regulate, to apply, to monitor and to improve the operations below; Treasury operations, Bilateral and multilateral foreign relations, Relations with national and international economic and financial institutions, Lending to and/or borrowing from foreign countries and/or institutions Protecting the value of Turkish currency and regulating the principles of exchange
policy Exercising the ownership functions of the government related with State-Owned
Enterprises and monitoring their activities Drafting, implementing, and monitoring the implementation of insurance
legislation State Aids operations
in cooperation with all other economic actors in a transparent, accountable and efficient way.
Organisation: 7 Directorate General & Affiliated Units
The Undersecretariat Of Treasury Slide 4
The Underseretariat of Turkish Treasury Directorate General of Public Finance
Responsible for
Financing the Central Government Budget
Debt Management
Risk Management
Cash Management
Contingent Liabilities and Receivables Management
The Undersecretariat Of Treasury Slide 5
Directorate General of Public Finance Debt and Risk Management Policies
Principles
Sustainability
Transperency
Accountability
Predictability
The Undersecretariat Of Treasury Slide 6
Directorate General of Public Finance Debt and Risk Management Policies
Objectives
Maintenance of borrowing policy consistent with monetary and fiscal policies, taking macroeconomic balances into account
Fulfillment of financing requirements at the lowest possible cost in medium-long term in accordance with the levels of risk determined in consideration of domestic and external market conditions and cost factors
The Undersecretariat Of Treasury Slide 7
Directorate General of Public Finance Debt and Risk Management Policies
Practices
Borrowing strategies are conducted based on the medium-long term programs while considering the trade-off between cost and risk
Keeping strong cash reserveSmoothing out the redemption profileExtending the maturity of borrowing Issuing mainly fixed rate and TL denominated instruments
The Undersecretariat Of Treasury Slide 8
Directorate General of Public Finance Debt and Risk Management Policies
Practices
In order to ensure accountability, transperency and predictability;
Annual & 3-month financing programs are preparedMonthly auction calendar is preparedAnnual and monthly debt management reports are prepared and
presented to Council of Ministers and publicPlanning and Budget Commission of the Parliament is regularly
informed about developments in debt management through private meetings.
The Undersecretariat Of Treasury Slide 9
Directorate General of Public Finance Debt and Risk Management Policies
Practices
In order to increase the efficiency of the primary and the secondary markets;
Investor relations are developed via regular meetings with primary dealers on a monthly basis within the framework of Primary Dealership System
Regular meetings with local and foreign investors are conducted to broaden the investor base.
Financial instruments are diversified by developing new borrowing instruments.
Efficient yield curve is generated by implementing security benchmarking policy.
The Undersecretariat Of Treasury Slide 10
Directorate General of Public Finance Debt and Risk Management Policies
Practices
Risk account was created to manage credit risks which may arise from Treasury guarantees and on-lent foreign debt
Guarantee fee, partial guarantee and guarantee limit were implemented to manage credit risks
Technical analyses and reports are conducted in order to control operational risks
The Undersecretariat Of Treasury Slide 11
Directorate General of Public Finance Debt and Risk Management Policies
Statistics
To maintain the effective functioning and in line with transparency objective, Turkish Treasury compiles and disseminates many public finance statistics via online bulletins and publications.
These statistics are produced along with the national legal framework
Some of the statistics, mainly debt figures, are produced and announced according to the «international standards» to enhance the comparability with other economies.
The Undersecretariat Of Treasury Slide 12
Debt statistics compiled for international organizations under SNA93
Central Government Debt for PSD (OECD & Worldbank, PSDS Guide < SNA 2008 & BPM6)
Central Government Debt for SDDS (IMF, SDDS Guide < GFSM 2001)
Central Government Stock of Debt Securities (BIS, HSS < SNA 2008)
Maastricht Debt for EDP Tables (Eurostat, CR479/2009 < ESA95)
Government Guaranteed Debt For EDP Questionnaire (Eurostat, CR479/2009 < ESA95)
Central Government Debt for GFS Tables (IMF, GFS Manual 2001 < SNA93)
Gross external debt of Turkey for SDDS (IMF, EDS Guide < SNA93 & BPM5)
The Undersecretariat Of Treasury Slide 13
Central Government Total Debt for PSDS
Responsible Institution : Turkish Treasury
Reported to: OECD and Worldbank, member of database since Dec. 2010
Institutional Coverage : Central Government
Data : Debt Stock
Frequency : Quarterly
Period : 2005Q4 - 2013Q1
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems
Manual : Public Sector Debt Statistics Guide, 2011 < SNA 2008
The Undersecretariat Of Treasury Slide 14
Central Government Total Debt for SDDS
Responsible Institution : TURKSTAT
Reported to : IMF, member of database since Aug. 1996
Institutional Coverage : Central Government
Data : Debt Stock
Frequency : Monthly
Period : 2013M6 – 2013M7
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems
Manual : The Special Data Dissemination Standard, Guide for Compilers and Users < GFSM 2001 < SNA93
The Undersecretariat Of Treasury Slide 15
Central Government Stock of Debt Securities
Responsible Institution : Central Bank
Reported to: Bank for International Settlements, member of database since Apr. 2010
Institutional Coverage : Central Government
Data : Stock of Debt Securities
Frequency : Quarterly
Period : 2005Q1-2013Q1
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source : Administrative Register, Treasury Domestic and External Debt Information Systems
Manual : HSS < SNA2008 & BPM6
The Undersecretariat Of Treasury Slide 16
Maastricht Debt for EDP Tables
Responsible Institution : TURKSTAT
Reported to: Eurostat, member of database since 2001
Institutional Coverage : General Government
Data : Outstanding Debt
Frequency : Yearly
Period : 2000 - 2012
Valuation : Face value (as defined in CR479/2009 )
Classifications: by institutional sector, by instrument type
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems (for debt of central government), CBRT Electronic Data Delivery System and Treasury External Debt Information System (for debt of local governments), Turkish State Mint (for Currency and Deposits), Information System of Public Sector Treasurership (for holders of debt securities, for consolidation purpose), Turkish Employment Agency (as holder of debt securities, for consolidation purpose)
Manual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009
The Undersecretariat Of Treasury Slide 17
Government Guaranteed Debt for EDP Questionnaire
Responsible Institution : TURKSTAT
Reported to : Eurostat, member of database since 2001
Institutional Coverage : General Government
Data : Stock of Treasury Guaranteed Debt, amounts of new guarantees provided, guarantees called (undertaken), repayments relating to guarantees called, write-offs by Government, fees collected for providing Guarantees, Amounts included in the starting line of EDP 2A via Risk Account
Frequency : Yearly
Period : 2009 - 2011
Classifications: By institutional sector
Data Source: Administrative Register, Treasury External Debt Information Systems
Manual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009
The Undersecretariat Of Treasury Slide 18
Central Government Debt for GFS Tables
Responsible Institution : Ministry of Finance
Reported to: IMF, member of database since Sep. 2011
Institutional Coverage : Central Government
Data : Outstanding Debt and Receivables
Frequency : Yearly
Period : 2008 - 2011
Classifications: By instrument
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems, CBRT for market price of Domestic Debt Securities, Reuters for market price of Eurobonds, Receivables Management and Information System.
Manual: Government Finance Statistics Manual, 2001 < SNA93
The Undersecretariat Of Treasury Slide 19
Gross external debt of Turkey for SDDS
Responsible Institution : Turkish Treasury
Reported to : WB, member of database since Aug. 1996
Institutional Coverage : All sectors of economy
Data : Outstanding Debt
Frequency : Quarterly
Period : 2012Q4 – 2013Q1
Classifications: By sectors (general government, central bank, banking sector, other sectors, direct investment) by original maturity, by instruments.
Data Source: Administrative Register, Treasury External Debt Information Systems, CBRT for private sector external debt.
Manual: External Debt Statistics Guide for Compilers and Users, 2003 < SNA93 & BPM5
The Undersecretariat Of Treasury Slide 20
New Adjustments Required to Implement SNA2008 for Current Debt Statistics
Change in Sector Classification
Change in Coverage of Debt Instruments
Change in Valuation
Other Changes
The Undersecretariat Of Treasury Slide 21
Change in Sector Classification
The quantitative criterion is applied to check if a publicly controlled non-financial unit is able to undertake a market activity. A market producer must cover through sales more than %50 of its production costs. If a unit is not a market producer, it must be classified within general government sector
Current System The «Financial Accounts Working Group», a group of co-worker agency,
Treasury, CBRT, MoF and TURKSTAT was established and has been working cooperatively since 2008
The principles and procedures of the compilation and dissemination of general government financial statistics is determined with a regulation jointly prepared by this working group and revised every three years period.
The Undersecretariat Of Treasury Slide 22
Change in Scope of Debt Instruments
Stock of Debt Under ESA95 = AF2 (Currency and Deposits) + AF3 (Securities other than shares) + AF4 (Loans) + AF5 (Shares and other equity, if any) + AF6 (Insurance technical reserves, if any) + AF7 (Other accounts payable)
Stock of Debt Under ESA2010 = AF2 (Currency and Deposits) + AF3 (Debt Securities) + AF4 (Loans) + AF5 (Equity, if any) + AF6 (insurance, pensions and standardized guarantee schemes, if any) + AF7 (Financial Derivatives) + AF8 (Other accounts payable)
The Undersecretariat Of Treasury Slide 23
Change in Scope of Debt Instruments
Maastricht Debt under CR479/2009 < ESA95 = AF2 (Currency and Deposits) + AF3 (Debt Securities / excluding AF34; Financial Derivatives) + AF4 (Loans)
Maastricht Debt under proposed changes in CR479/2009 = AF2 Currency and Deposits+ AF3 Debt Securities+ AF4 Loans+ AF 71 Financial Derivatives other than employee stock options (AF34 in ESA95) (?)+ AF 81 Trade Credits and Advances (AF71 in ESA95) (?)+ AF 6 Insurance, pension and standardised guarantee schemes (-)
The Undersecretariat Of Treasury Slide 24
Change in Valuation
There is no change in valuation of debt instruments in SNA2008 (ESA2010). The stock of government liabilities should be recorded in national accounts at their market value at the end of the accounting period, in the closing balance sheet.
So, the valuation technique for central government debt (for PSD), stock of debt securities (for BIS), Central Government Debt for GFS Tables, Central Government Debt for SDDS, Gross External Debt for SDDS will NOT change.
But, valuation for Maastricht Debt may change within the proposed changes in CR479/2009 from “face value” to “market value” (or nominal value).
The Undersecretariat Of Treasury Slide 25
Things to do for SNA2008 Transformation in Debt Statistics
Review non-financial public institutions in accordance with quantitative criteria Revision of the «Regulation on General Government Financial Statistics»
in coordination with Financial Accounts Working Group
Review of debt instruments; especially AF8 other accounts payable and decide its data source
Revise the measurement of debt reported to international institutions, except government debt for GFS, Establishing the necessary infrastructure to provide debt at market value,
through existing Treasury information systems. Continue close inter-agency coordination Ensure the sufficient and sustainable IT and human resources
The Undersecretariat Of Treasury Slide 26
Thank you very much for your attention..