Presentation on theme: "Debt Statistics Compiled under International Standarts and Transition to SNA 2008 Eylem VAYVADA DERYA Turkish Treasury Directorate General of Public Finance."— Presentation transcript:
1Debt Statistics Compiled under International Standarts and Transition to SNA 2008 Eylem VAYVADA DERYA Turkish Treasury Directorate General of Public FinanceNational Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey10 September 2013Ankara, Turkey
2Presentation Plan The Underseretariat of Turkish Treasury Treasury’s Debt and Risk Management PoliciesDebt statistics compiled for international organizations under SNA93 (ESA95)New Adjustments Required to Transmit SNA2008 (ESA 2010) in Current StatisticsThings to do for SNA2008 Transformation in Debt Statistics
3The Underseretariat of Turkish Treasury Missionto 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 institutionsProtecting the value of Turkish currency and regulating the principles of exchange policyExercising the ownership functions of the government related with State-Owned Enterprises and monitoring their activitiesDrafting, implementing, and monitoring the implementation of insurance legislationState Aids operationsin cooperation with all other economic actors in a transparent, accountable and efficient way.Organisation: 7 Directorate General & Affiliated UnitsThere are 3 laws which regulates structures, duities and authority of Treasury;Law Number: 4059 Law on the Structures and Duties of the Treasury and the Foreign Trade UndersecretariatsLaw Number: Law on Regulating Public Finance and Debt Management Budget Laws
4The Underseretariat of Turkish Treasury Directorate General of Public Finance Responsible forFinancing the Central Government BudgetDebt ManagementRisk ManagementCash ManagementContingent Liabilities and Receivables Management
5Directorate General of Public Finance Debt and Risk Management Policies PrinciplesSustainabilityTransperencyAccountabilityPredictability
6Directorate General of Public Finance Debt and Risk Management Policies ObjectivesMaintenance of borrowing policy consistent with monetary and fiscal policies, taking macroeconomic balances into accountFulfillment 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
7Directorate General of Public Finance Debt and Risk Management Policies PracticesBorrowing strategies are conducted based on the medium-long term programs while considering the trade-off between cost and riskKeeping strong cash reserveSmoothing out the redemption profileExtending the maturity of borrowingIssuing mainly fixed rate and TL denominated instruments
8Directorate General of Public Finance Debt and Risk Management Policies PracticesIn 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.
9Directorate General of Public Finance Debt and Risk Management Policies PracticesIn 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 SystemRegular 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.Leasing certificate
10Directorate General of Public Finance Debt and Risk Management Policies PracticesRisk account was created to manage credit risks which may arise from Treasury guarantees and on-lent foreign debtGuarantee fee, partial guarantee and guarantee limit were implemented to manage credit risksTechnical analyses and reports are conducted in order to control operational risks
11Directorate General of Public Finance Debt and Risk Management Policies StatisticsTo 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 frameworkSome of the statistics, mainly debt figures, are produced and announced according to the «international standards» to enhance the comparability with other economies.Other statistics disseminated at the Web;Debt payment realizationsDebt payment projectionsBudget financing statisticsCash realizationsData on Treasury receivablesData on State Owned Enterprises and Busines (income statement, balance sheet, duty loses, employee statistics etc) -Statistics on insurance sector (income statements and balance sheets of companies, data on premiums and other main indicators)Data on direct investments
12Debt 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)PSD: Public Sector DebtSDDS : Special Data Dissemination StandartBIS: Bank for International SettlementsHSS: Handbook on Securities StatisticsEDP: Excessive Deficit ProcedureGFS: Government Finance StatisticsCouncil Regulation 479
13Central Government Total Debt for PSDS Responsible Institution : Turkish TreasuryReported to: OECD and Worldbank, member of database since Dec. 2010Institutional Coverage : Central GovernmentData : Debt StockFrequency : QuarterlyPeriod : 2005Q Q1Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditorData Source: Administrative Register, Treasury Domestic Debt and External Debt Information SystemsManual : Public Sector Debt Statistics Guide, 2011 < SNA 2008
14Central Government Total Debt for SDDS Responsible Institution : TURKSTATReported to : IMF, member of database since Aug. 1996Institutional Coverage : Central GovernmentData : Debt StockFrequency : MonthlyPeriod : 2013M6 – 2013M7Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditorData Source: Administrative Register, Treasury Domestic Debt and External Debt Information SystemsManual : The Special Data Dissemination Standard, Guide for Compilers and Users < GFSM 2001 < SNA93
15Central Government Stock of Debt Securities Responsible Institution : Central BankReported to: Bank for International Settlements, member of database since Apr. 2010Institutional Coverage : Central GovernmentData : Stock of Debt SecuritiesFrequency : QuarterlyPeriod : 2005Q1-2013Q1Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditorData Source : Administrative Register, Treasury Domestic and External Debt Information SystemsManual : HSS < SNA2008 & BPM6
16Maastricht Debt for EDP Tables Responsible Institution : TURKSTATReported to: Eurostat, member of database since 2001Institutional Coverage : General GovernmentData : Outstanding DebtFrequency : YearlyPeriod :Valuation : Face value (as defined in CR479/2009 )Classifications: by institutional sector, by instrument typeData 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
17Government Guaranteed Debt for EDP Questionnaire Responsible Institution : TURKSTATReported to : Eurostat, member of database since 2001Institutional Coverage : General GovernmentData : 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 AccountFrequency : YearlyPeriod :Classifications: By institutional sectorData Source: Administrative Register, Treasury External Debt Information SystemsManual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009Legal base for methodology: ESA 95Legal base for processes: CR479/2009
18Central Government Debt for GFS Tables Responsible Institution : Ministry of FinanceReported to: IMF, member of database since Sep. 2011Institutional Coverage : Central GovernmentData : Outstanding Debt and ReceivablesFrequency : YearlyPeriod :Classifications: By instrumentData 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
19Gross external debt of Turkey for SDDS Responsible Institution : Turkish TreasuryReported to : WB, member of database since Aug. 1996Institutional Coverage : All sectors of economyData : Outstanding DebtFrequency : QuarterlyPeriod : 2012Q4 – 2013Q1Classifications: 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
20New Adjustments Required to Implement SNA2008 for Current Debt Statistics Change in Sector ClassificationChange in Coverage of Debt InstrumentsChange in ValuationOther Changes
21Change 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 sectorCurrent SystemThe «Financial Accounts Working Group», a group of co-worker agency, Treasury, CBRT, MoF and TURKSTAT was established and has been working cooperatively since 2008The 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.Change is not in the definition of sales but it is in the definition of costs.In NSA 2008, “net interest charges” is added to the production cost as a measure of “cost of borrowed capital”.
22Change 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 financial assets boundary has been expanded to include a wider coverage of financial derivative contracts.
23Change 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 (-)EDP tables are compiled compatible with SNA93 butthere is a Commity Regulation which defines Maastricht debt slightly different from the one in SNA93 (ESA 95).So the instrument coverage and the valuation is slightly different from the definitions in SNA 93.But there is a discussion among the EU members about the instrument coverage andthe valuation of Maastrich Debt after implementetion of ESA2010.EU members still have a problem of collecting the data about insurance and pensions.Also, the data on trade credits are not still perfect. So they are arguing to include at least “arrears” arising from the trade credits into definition of debt.
24Change in ValuationThere 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).
25Things to do for SNA2008 Transformation in Debt Statistics Review non-financial public institutions in accordance with quantitative criteriaRevision of the «Regulation on General Government Financial Statistics» in coordination with Financial Accounts Working GroupReview of debt instruments; especially AF8 other accounts payable and decide its data sourceRevise 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 coordinationEnsure the sufficient and sustainable IT and human resources