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

2. 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/

3. 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/ 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.

4. 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.

5. 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

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

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

8. 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

9. Ministerul Finanţelor
al Republicii Moldova

10. 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

11. 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.

12. 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

13. 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)

14. Ministerul Finanţelor
al Republicii Moldova
Thank you!