Australian Government, the Australian Office of Financial Management

Commonwealth Debt Management 1997-98

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Entire Document 727kB 297kB
Part 1
Preliminaries
Contents
Introduction
1997-98 Debt Issue and Debt Repurchase Program
109kB 301kB
Part 2
Portfolio Management
80kB 432kB
Appendices 1 to 4
Public Debt Interest in 1997-98
Liaison with Credit Rating Agencies
Consultants Engaged in 1997-98
The Secondary Market for CGS - Movements in Yields
91kB 451kB
Appendices 5 to 7
Commonwealth Government Securities Issued During 1997-98
The Stock of Commonwealth Government Securities on Issue
Redemption in 1997-98 of Commonwealth Government Securities on Issue for the Commonwealth
385kB 843kB
Appendices 5 to 7
Commonwealth Government Securities on Issue for the States and the Territories
The Loan Consolidation and Investment Reserve (LCIR)
Glossary
148kB 365kB

Introduction

The Treasurer has ministerial responsibility for the Commonwealth's debt management operations and, in accordance with the relevant legislation, authorises officers of the Treasury to undertake certain of these responsibilities on his behalf.

The Treasury is responsible for advising the Treasurer on all aspects of Commonwealth debt management. Debt management operations cover the issue of various borrowing instruments, the strategic formulation and undertaking of portfolio management, including through swap transactions, the administration of the redemption of debt represented by Commonwealth Government securities (CGS) and the assessment of the budgetary cost of the Commonwealth's debt portfolio.

A key consideration for the Treasury in carrying out its debt management functions is the responsibility implied by the Commonwealth's standing as not only the premier credit in the domestic securities market, but also as a high quality borrower that conducts its funding and portfolio management operations at all times in a professional, transparent, even-handed and non-opportunistic manner.

The total face value of CGS on issue for the Commonwealth, including CGS held by the Commonwealth's Reserved Money Fund, was $106.8 billion at end-June 1998. Excluding the Reserved Money Fund holding, which does not constitute a Commonwealth liability, the net CGS on issue for the Commonwealth was $91.8 billion at end-June 1998.

In addition, the Treasury administers the redemption of Commonwealth Government security debt on allocation to the States and the Territories, with a face value of $1.9 billion of stock being on issue at end-June 1998. The Commonwealth ceased new money borrowings on behalf of the States and the Territories in 1987-88 and ceased roll-over borrowings for the States and Territories from end-June 1990.

This publication mainly covers CGS on issue for the Commonwealth and operations in 1997-98 in relation to that debt. The first section provides details of the 1997-98 debt iss39146;s portfolio management in 1997-98. Then follow appendices dealing with the public debt interest cost of CGS in 1997-98, Commonwealth liaison with credit rating agencies, debt management consultants engaged in 1997-98 and yield movements in the secondary market for CGS.

A series of further appendices provides statistical information on CGS issuance and redemption in 1997-98 and historical data on the stock of CGS on issue for the Commonwealth, the States and the Northern Territory. Details of the redemption of CGS on allocation to the States and Territories, and of their outstanding holdings of CGS, are provided in Appendix 8.

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