Dept 20 - Debt and Financial Assets Management Department

The department is responsible for the state’s commercial operations and the management of the state debt. It implements short and long-term state financing, manages the state’s cash, debt strategy and the risks of the portfolio of treasury bonds...

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Is responsible for ensuring activities of the state and implementation of financial market operations associated with the management of public debt, financial assets and receivables and contingent liabilities within the division’s competence and with the management of funds of the state treasury’s summary accounts and the subsequent central management of the state liquidity. It forms a concept of financial market policy in these areas. It carries out short and long-term state financing, ensures daily solvency position of the state by performing financial market operations and by investing summary account balances of the state treasury, handles emission and debt strategy of the state in relation to the defined medium-term fiscal and financial policy, manages risks and sets limits on the debt portfolio and active portfolios in its competence and manages budget chapters - state debt and state financial assets operations. When securing these activities, it issues and sells state bonds, ensures payment of all interest expenses and other related costs of a debt service and repays the principal of matured bonds and acquired loans. It re-purchases and exchanges government bonds. It plans, prepares, and negotiates bank loans, keeps records thereof, ensures their evaluation and comprehensive management and administration. It analyses data on financial markets, performs quantitative analysis of scenarios, tests debt portfolio, simulates the expected interest costs of the state and analyses time series as a basis for strategic decision-making regarding the management of state debt and state financial assets. It manages and administers state loans and repayable financial assistance provided from the state financial assets and receivables from state guarantees realized by means of state financial assets. It supplies statistical information on debt service to international organizations and the Czech Statistical Office (ČSÚ). It participates in negotiations on the Czech Republic’s rating evaluation and is responsible for ensuring contractual relations with rating agencies. It performs conceptual activities and all operational agenda associated with securing the tasks of the Ministry towards the selected international financial institutions, of which it is a member, i.e. the European Investment Bank (EIB) and the Czech Export Bank (CEB), and with which it has concluded special agreements. In terms of its competence it participates at drafting legislation related to the issuance and other state operations in the financial market, management of the public debt, financial assets and state treasury liquidity. It ensures according to valid methodology processing of submission documents for creating accounting records on revenues, expenditures, assets and liabilities that are subject to the accounting chapters - state debt and state financial assets operations. It cooperates with other organizational units of the Ministry in creating the concept and strategy for the development of Wallstreet Suite (IS WSS) information system and related interfaces. It is a functional manager of IS WSS and related information and business systems of Reuters, MTS and Bloomberg. It ensures record keeping and escrow of securities. It provides a comprehensive agenda of providing extra budgetary loans and credits to domestic legal entities and contributes to establishing financial conditions for the provision of international loans within the framework of bilateral and multilateral aid. It ensures services of the participant in the Central Depository of Securities and international depositories, in which it represents the Czech Republic, by virtue of membership of the Ministry in these settlement mechanisms in the implementation of the state financial operations and in keeping individual records of state bonds. It cooperates in the development of the methodology of the state payment system process and participates at analysing requirements for functional settings of the state treasury system in relation to state liquidity management and implementation of the following chapters - state debt and state financial assets operations. It ensures coordination and communication in terms of liquidity with all entities, which are also owners of accounts, the balances of which are legally defined as finances of the state treasury and continuously monitors the development of the state and financial flows of funds in these accounts under the rules it draws up in cooperation with the Czech National Bank.

Units

  • 2001 - State Financing and Liquidity Management Unit 
  • 2002 - Portfolio Risk Management and Strategy Unit 
  • 2003 - Financial Operations Administration and Settlement Unit 
  • 2004 - Management of state treasury finances and client support Unit