Public Debt Management Ministerul Finanţelor al Republicii Moldova Public Debt Management Elena Matveeva Head of the Public Debt Department

Public Sector Debt Administration Ministerul Finanţelor al Republicii Moldova Public Sector Debt Administration Government (thought MoF) is responsible for central debt and stat guaranties administration. National Bank of Moldova is responsible for debt management contracted in their own name. Local Authorities are responsible for the administration of local debt and issued guaranties SoE/Municipal companies/ JS are responsible for debt management contracted in their own name. Law on Public Sector Debt and State Guarantees and on-lending from State Borrowings/22.12.2006

Ministerul Finanţelor al Republicii Moldova Currently, the PDD is structured according to products and not core functions Public Debt Department (15) External Debt Division (4) Domestic Debt Division (4) On-lending division (4) Risk and Analysis Unit (2) According to the Law on Public Sector Debt and State Guarantees and on-lending from State Borrowings/22.12.2006 the Ministry of Finance is responsible for the administration of the central debt The responsible institution for the management of debt within the Ministry of Finance is the Public Debt Department created in October 2001.

Medium term debt management strategy objectives Ministerul Finanţelor al Republicii Moldova Medium term debt management strategy objectives Debt Management fundamental objective: to ensure the state budget financing needs at minimum cost in the medium and long term taking into the account all related risks. Specific objectives for achieving the fundamental objective: Limit the provision of government guarantees to cases which promote priority investment projects for the national economy, provided that all legal requirements are fulfilled; Gradual reduction of the government debt to the National Bank of Moldova; Development of domestic primary market.

Developing Domestic Primary Market Ministerul Finanţelor al Republicii Moldova Developing Domestic Primary Market Gradual maturity extension of local currency debt instruments Revision of the code of duties of the PDs (rights and obligations) Strengthening communication with market participants Developing domestic market is difficult due to: Undeveloped secondary market Narrow investor base

Structure of Central Government Debt by instruments Ministerul Finanţelor al Republicii Moldova Structure of Central Government Debt by instruments

Structure of Central Government Debt by currency Ministerul Finanţelor al Republicii Moldova Structure of Central Government Debt by currency

Structure of Government securities traded in the primary market market Ministerul Finanţelor al Republicii Moldova Structure of Government securities traded in the primary market market

Ministerul Finanţelor al Republicii Moldova

Key Relationships National Bank External creditors Treasury Ministerul Finanţelor al Republicii Moldova Key Relationships National Bank External creditors Treasury Primary dealers financing challenges; auction calendar; domestic market development forecast: debt service domestic financing extenal financing development of the PM, Debt strategy, auctions procedures, selection of PDs and monitoring. financing challenges; debt negociations

Cooperation with the National Bank Ministerul Finanţelor al Republicii Moldova Cooperation with the National Bank An exchange of information between the MF and the NBM took place weekly (every Tuesday) until 2010 at the meetings of the Liquidity Management Committee (LMC). Nowadays there is a regular monthly exchange of information between MF and the NBM on debt transactions and the flows of central government funds, but outside the LMC; In order to improve cooperation and exchange of information between the respective institutions, in 2017 was elaborated a draft of the Memorandum of Understanding between the Ministry of Finance and the NBM on cooperation for monetary and financial purposes.

Cash and Debt management Ministerul Finanţelor al Republicii Moldova Cash and Debt management Treasury Department Debt Department Managing TSA External and domestic borrowing Cash planning and forecasting Issuance government securities Managing payment Auction calendar and borrowing plan Budget execution and financial reporting Managing government debt portfolio Debt service Debt statistics Managing contingent Liability

Close coordination between DM and CM Ministerul Finanţelor al Republicii Moldova Close coordination between DM and CM Debt issuance decisions are taken in the context of the seasonal nature of governments cash flows – to the extend the need for regular domestic issuance allows Cash buffers (created in 2017) to ensure timely repayment of maturing debt or other expenditures according to the Law 181 on public finance and fiscal responsibility Cash plan is regularly updated (monthly, weekly)

Ministerul Finanţelor al Republicii Moldova Thank you!