Dept 20 - Debt and Financial Assets Management

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...

ilustrace

It is responsible for the activities of the State and executing operations on financial markets connected with the management of the State debt and the financial assets of the State within the competence of the Department and with the administration of the funds of general treasury accounts and the related central management of liquidity of the State. It creates the concept of a financial market policy in these areas. It performs short-term and long-term government financing of the State, provides for the State's daily solvent position by conducting money market operations and investing the balances of the treasury general account balances in individual currencies. It prepares the issuance and debt strategy of the State following the approved medium-term budgetary and fiscal policy with respect to budgetary accountability. It creates a strategy for managing the debt portfolio and the financial asset portfolios with a view to minimising the net interest expense of the State budget, while maintaining a prudent approach within the limits of approved and announced strategic limits or target zones for each type of financial risk. It manages the budget chapters State Debt and the State Financial Assets Operations. In performing these activities, it issues and sells government bonds, ensures the payment of all interest expenses and other related costs of the debt service and repays the nominal values of bonds and the principal of the loans and credits received. It performs repurchases and exchanges of government bonds prior to their maturity date. It plans, prepares and negotiates loans and credits, maintains their records, ensures their evaluation and comprehensive administration. It analyses data on financial markets, performs quantitative scenario analyses and debt portfolio testing, simulates the expected interest costs of the State, and analyses time series as a basis for strategic decision-making in the management of State debt and State financial assets. It administers State loans and repayable financial assistance provided from State financial assets and receivables from State guarantees made from State financial assets. It provides statistical information on debt service to international organizations, the Czech National Bank and the Czech Statistical Office. It participates in negotiations on the rating of the Czech Republic and is responsible for ensuring contractual and budgetary relations with credit rating agencies. It carries out conceptual work and all operational agenda related to fulfilling the Ministry’s duties towards selected international financial institutions of which it is a member, i.e. the EIB and the CEB, with which it has special agreements. Within its competence it participates in the development of legislation related to issuance activities and other State operations in the financial market, government debt and financial assets and liquidity of the Treasury. It provides for the preparation of documents for the creation of accounting records on revenue, expenditure, assets and liabilities subject to the accounting centres State Debt and the State Financial Assets Operations. It collaborates with other units of the Ministry on the concept and strategy for the development of the Wall Street Suite information system (IS WSS) and the related interfaces. It is a functional administrator of the IS WSS and related information and trading systems Reuters, MTS Czech Republic and Bloomberg. It provides bookkeeping and safekeeping of securities. It provides for a comprehensive agenda for the provision of extra-budgetary loans and credits to national legal entities and is involved in setting financial conditions for the provision of international loans under bilateral and multilateral assistance. It provides for the services of a participant of national and international securities depositories in which it represents the Czech Republic as the Ministry is a member in these depositaries and related settlement systems in conducting the State financial operations and in keeping a separate register of sovereign bonds. It participates in the creation of methodology of the State payment system and participates in the analyses of the requirements for the functional adjustment of the treasury system in relation to the State liquidity management and the implementation of revenues and expenditures of the chapters State Debt and State Financial Assets Operations. It provides for the coordination and communication in terms of the liquidity of the State with all entities that are also account holders whose balances are legally defined as treasury funds and continuously monitors the balances and movements of funds in these accounts on the basis of rules developed in cooperation with the CNB. It manages the funds of the organizations affected by Act No 218/2000, on budgetary rules and amending certain related acts (the Budgetary Rules) on the accounts in the CNB and outside the treasury accounts in banks and other payment service providers, subject to the prior approval of the Ministry of Finance, and performs financial analyses of these funds.

Units

  • 2001 -  State Financing and Treasury Liquidity Management Unit
  • 2002 -  Portfolio Management Strategy and Debt Statistics Unit
  • 2003 - Financial Operations Administration and Settlement Unit 
  • 2004 - Financial Analysis and Treasury Fund Management Unit