Department 20 – Management of National Debt and Financial Assets

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...

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Department 20 is responsible for ensuring activities of the state and implementation of operations on the financial markets associated with the management of national / government debt and for the management of financial assets of the state falling within the competence of the department and in relation to management of funds in the general treasury accounts and subsequent central liquidity management. It formulates concepts for financial market policies in these areas. It provides short-term and long-term financing of the state, secures the daily solvent position of the state by conducting money market operations and investing the balances of the state treasury general accounts in individual currencies. It prepares bond emissions and formulates debt strategies of the state in connection with approved medium-term budgetary and fiscal policy with regard to its compliance with principles of budgetary responsibility. It formulates strategies for managing the debt portfolio and financial assets portfolios with regard to minimizing their net interest expenditures while maintaining prudent approach within limits set by approved and announced strategic limits, or target bandwidths for individual types of financial risks. It manages the ‘Government Debt’ and ‘Operations of State Financial Assets’ budget chapters. In performing these activities, it issues and sells government bonds, reimburses all interest expenses and other related debt service costs, and repays nominal values of bonds and principal of borrowings from loans and credit arrangements. It repurchases and exchanges government bonds before their maturity date. It plans, prepares and arranges loans and credit lines, keeps their records, ensures their evaluation and comprehensive management. It analyses financial market data, performs quantitative analyses of various scenarios, tests the debt portfolio, simulates anticipated interest costs of the state and analyses time series as a basis for strategic decisions in the management of government debt and financial assets of the state. It manages government loans and repayable financial assistance provided from government financial assets and receivables from government guarantees realized from governmental financial assets. It provides statistical information on debt service matters to international organizations and to the Czech National Bank (Czech abbreviation: ČNB) and the Czech Statistical Office (Czech abbreviation: ČSÚ). Department 20 participates in negotiations on the rating of the Czech Republic and is responsible for securing contractual and budgetary relations with credit rating agencies. It formulates concepts and carries out all operational agenda associated with ensuring the tasks of the Ministry vis-à-vis selected international financial institutions of which it is a member, i.e. the EIB and the CEB with which it has special agreements. It participates, within its domain of competence, in drafting legislation related to bond emissions and related activities and other government operations on financial markets, with respect to national / sovereign debt and financial assets management. It compiles and processes documentation for accounting records concerning revenues, expenditures, assets and liabilities that are reported for accounting centres ‘Government Debt’ and ‘Operations of State Financial Assets’ budget chapters. Department 20 cooperates with other organizational units of the Ministry in formulating concepts and strategy for the development of the Wall Street Suite (IS WSS) system and the related interfaces. It is the functional administrator of IS WSS system as well as of the related information and trading systems such as Reuters, MTS Czech Republic and Bloomberg. It is in charge of record-keeping and safekeeping of securities. It oversees and manages the overall agenda related to provision of extra-budgetary loans and credits to domestic legal entities and participates in determining of financial conditions for provisions of international loans within the framework of bilateral and multilateral assistance. It provides services as a participant in domestic and international securities depositories in which it represents the Czech Republic, on the basis of the Ministry’s membership in these depositories, and in the related settlement systems when conducting financial operations on behalf of the state and in maintaining an independent record-keeping of government bonds. It participates in creation of guidelines for state payment processes and participates in analyses of requirements for the functional set-up of state treasury systems in connection with state liquidity management and implementation of revenues and expenditures within ‘Government Debt’ and ‘Operations of State Financial Assets’ budget chapters. It ensures coordination and communication, in relation to matters concerning state liquidity, with all relevant entities that are also owners of accounts whose balances are designated by law as representing treasury funds, and continuously monitors development of balances and movements of funds in these accounts on the basis of rules developed in cooperation with the Czech National Bank. It manages funds of organizations stipulated in Act No. 218/2000 Coll., On Budgetary Rules and Amendments to Certain Related Acts (Budgetary Rules) in accounts maintained by the Czech National Bank and outside Treasury accounts with banks and other payment service providers on the basis of a prior consent of the Ministry of Finance; it carries out financial analyses of these funds.

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Units

  • Unit 2001 – Financing of the State and Treasury Liquidity Management
  • Unit 2002 – Portfolio Management Strategies and Debt Statistics
  • Unit 2003 – Administration and Settlement of Financial Operations
  • Unit 2004 – Financial Analyses and Administration of Funds in the State Treasury