Australian Government, the Australian Office of Financial Management

Commonwealth Debt Management 1998‑99


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Preliminaries
Contents
Introduction
21kB 51kB
Part 1
1998-99 Debt Issue and Debt Repurchase Program
72kB 239kB
Part 2
Portfolio Management
59kB 204kB
Appendices 1 to 4
1: Public Debt Interest in 1998-99
2: Liaison with Credit Rating Agencies
3: The Secondary Market for CGS - Movements in Yields
4: Commonwealth Government Securities Issued During 1998-99
13kB 310kB
Appendix 5
5:The Stock of Commonwealth Government Securities on Issue
87kB 288kB
Appendices 6 to 7
6: Redemption in 1998-99 of Commonwealth Government Securities on Issue for the Commonwealth
7: Commonwealth Government Securities on Issue for the States and the Territories
22kB 233kB
Appendices 8 to 9
8: The Loan Consolidation and Investment Reserve (LCIR)
9: Glossary
52kB 69kB

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.

The total face value of CGS on issue for the Commonwealth, including CGS held by the Commonwealth's Reserved Money Fund, was $106.5 billion at end-June 1999. Excluding the Reserved Money Fund holding, which does not constitute a Commonwealth liability, the net CGS on issue for the Commonwealth was $83.5 billion at end-June 1999.

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 $1.8 billion of stock being on issue at end-June 1999. The Commonwealth ceased new money borrowings on behalf of the States and 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 1998-99 in relation to that debt. The first section provides details of the 1998-99 debt issue and debt repurchase program and the second section canvasses the Commonwealth's portfolio management in 1998-99. Then follow appendices dealing with the public debt interest cost of CGS in 1998-99, Commonwealth liaison with credit rating agencies and yield movements in the secondary market for CGS.

A series of further appendices provides statistical information on CGS issuance and redemption in 1998-99 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 7. Operations of the LCIR, a component of the Commonwealth's Reserved Money Fund, are detailed in Appendix 8.

This will be the last issue of the Commonwealth Debt Management Report published under the aegis of the Treasury.

In the May 1999 Budget, the Government announced that a specialist agency, to be known as the Australian Office of Financial Management, would be established within the Treasury portfolio from 1 July 1999. The Office, an agency prescribed under the Financial Management and Accountability Act 1997, will assume responsibility for the Commonwealth's debt management activities previously undertaken within the Department of the Treasury.

Material presented in the Commonwealth Debt Management Report will be included in the Annual Reports of the Australian Office of Financial Management.

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