SELECTED DEBT MANAGEMENT AGENCIES—LEGAL STATUS AND ACCOUNTABILITY

Sweden: Swedish National Debt Office (SNDO)

  Originally set up in 18th century to handle Kingdom of Sweden's funding and debts. Until 1989 was an authority controlled by Parliament. On 1 July 1989 SNDO became directly subordinate to government. Commissioners of SNDO were replaced by a Board whose main role is to lay down limits and guidelines for Debt Office's borrowing activities. This change in SNDO's principal required an amendment to the constitution, a process which involved two parliamentary votes with a general election in between.

  SNDO is a government authority which administers borrowing activities on behalf of the state. It is responsible for management of central government debt, issuing guarantees and providing loans on behalf of the state and co-ordinating state guarantee activities and lending to the business sector. It also functions as an internal bank in relation to government authorities, monitors the state's cash management efficiency and publishes forecasts of the central government borrowing requirement.

  SNDO's performance is evaluated by comparing the cost of the central government debt with that of a benchmark portfolio for the fiscal year.

Portugal: Instituto de Gestao do Credito Publico (IGCP)

  Set up in December 1996. IGCP is the entity responsible for management of Portuguese central government debt and execution of central borrowing programme in accordance with the Public Debt Law. IGCP took over this function from Treasury and Junta do Credito Publico.

  Statutory bodies: Chairman of Board of Directors, Board of Directors, Advisory Board and Audit Committee. Board of Directors appointed by the Council of Ministers. Empowered to discharge all duties and take all actions committed to the IGSCP under the Law. Advisory Board includes member of Board of Directors of Bank of Portugal and four experts appointed by Council of Ministers. Audit Committee includes two members appointed by the Minister of Finance one of which must be an official chartered accountant.

  Objective is to raise funds and execute other financial transactions on behalf of the Republic of Portugal so as:

—  to fulfil borrowing requirements of Republic in a stable manner; and

—  to minimise the cost of government debt on a long term perspective subject to risk strategies defined by the government.

Ireland: National Treasury Management Agency (NTMA)

  National Treasury Management Act 1990 provided for NTMA to borrow moneys for the Exchequer and to manage the National Debt on behalf of and subject to control and general superintendence of the Minister for Finance. The Act enabled government to delegate the borrowing and debt management functions of the Finance Ministry to the Agency. Obligations or liabilities undertaken by the Agency in performing its functions have the same force and effect as if undertaken by the Minister.

  Chief Executive is appointed by the Minister for Finance, is responsible to him and is the Accounting Officer for the purposes of the Dail Public Accounts Committee. Agency has an Advisory Committee.

  The Agency's main objective is to fund maturing government debt and annual borrowing requirements at a lower cost than that of a medium term low risk benchmark portfolio, while containing the volatility of annual debt-service costs.

Belgium: Federal Public Debt Department

  Operates as part of the Belgian Treasury. Two bodies deal with management of debt—the Debt Agency and the Public Debt Service. Debt Agency set up on October 1998 within Treasury to ensure Belgium ready to face challenges of new euro environment.

  Debt Agency has three functions:

—  carries out all financial transactions in monetary and capital markets. Responsible for auctions, other types of debt issuance and all other funding operations;

—  determines debt management strategy, assesses and manages market and credit risks, co-ordinates debt management with the State budget and is in charge of legal matters, product development and communication;

—  operation of back-office and IT systems.

  The Debt Agency is managed by three Directors who together form the Executive Committee.

  The Debt Agency and the Public Debt Service report to a Strategic Committee, chaired by the Administrator General of the Treasury. The members of the Strategic Committee include the representative of the Minister of Finance (Chief of the cabinet or cabinet Advisor), the Director General of the Treasury and Debt, the three Directors of the Debt Agency and the Head of the Public Debt Service.

11 February 1999