1. Debt Statistics Compiled under International Standarts and Transition to SNA 2008
Eylem VAYVADA DERYA Turkish Treasury Directorate General of Public Finance
National Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey
10 September 2013
Ankara, Turkey

2. Presentation Plan The Underseretariat of Turkish Treasury
Treasury’s Debt and Risk Management Policies
Debt statistics compiled for international organizations under SNA93 (ESA95)
New Adjustments Required to Transmit SNA2008 (ESA 2010) in Current Statistics
Things to do for SNA2008 Transformation in Debt Statistics

3. The Underseretariat of Turkish Treasury
Mission
to determine the economic policies and in accordance with the policies set; to regulate, to apply, to monitor and to improve the operations below;
Treasury operations,
Bilateral and multilateral foreign relations,
Relations with national and international economic and financial institutions,
Lending to and/or borrowing from foreign countries and/or institutions
Protecting the value of Turkish currency and regulating the principles of exchange policy
Exercising the ownership functions of the government related with State-Owned Enterprises and monitoring their activities
Drafting, implementing, and monitoring the implementation of insurance legislation
State Aids operations
in cooperation with all other economic actors in a transparent, accountable and efficient way.
Organisation: 7 Directorate General & Affiliated Units
There are 3 laws which regulates structures, duities and authority of Treasury;
Law Number: 4059 Law on the Structures and Duties of the Treasury and the Foreign Trade Undersecretariats
Law Number: Law on Regulating Public Finance and Debt Management Budget Laws

4. The Underseretariat of Turkish Treasury Directorate General of Public Finance
Responsible for
Financing the Central Government Budget
Debt Management
Risk Management
Cash Management
Contingent Liabilities and Receivables Management

5. Directorate General of Public Finance Debt and Risk Management Policies
Principles
Sustainability
Transperency
Accountability
Predictability

6. Directorate General of Public Finance Debt and Risk Management Policies
Objectives
Maintenance of borrowing policy consistent with monetary and fiscal policies, taking macroeconomic balances into account
Fulfillment of financing requirements at the lowest possible cost in medium-long term in accordance with the levels of risk determined in consideration of domestic and external market conditions and cost factors

7. Directorate General of Public Finance Debt and Risk Management Policies
Practices
Borrowing strategies are conducted based on the medium-long term programs while considering the trade-off between cost and risk
Keeping strong cash reserve
Smoothing out the redemption profile
Extending the maturity of borrowing
Issuing mainly fixed rate and TL denominated instruments

8. Directorate General of Public Finance Debt and Risk Management Policies
Practices
In order to ensure accountability, transperency and predictability;
Annual & 3-month financing programs are prepared
Monthly auction calendar is prepared
Annual and monthly debt management reports are prepared and presented to Council of Ministers and public
Planning and Budget Commission of the Parliament is regularly informed about developments in debt management through private meetings.

9. Directorate General of Public Finance Debt and Risk Management Policies
Practices
In order to increase the efficiency of the primary and the secondary markets;
Investor relations are developed via regular meetings with primary dealers on a monthly basis within the framework of Primary Dealership System
Regular meetings with local and foreign investors are conducted to broaden the investor base.
Financial instruments are diversified by developing new borrowing instruments.
Efficient yield curve is generated by implementing security benchmarking policy.
Leasing certificate

10. Directorate General of Public Finance Debt and Risk Management Policies
Practices
Risk account was created to manage credit risks which may arise from Treasury guarantees and on-lent foreign debt
Guarantee fee, partial guarantee and guarantee limit were implemented to manage credit risks
Technical analyses and reports are conducted in order to control operational risks

11. Directorate General of Public Finance Debt and Risk Management Policies
Statistics
To maintain the effective functioning and in line with transparency objective, Turkish Treasury compiles and disseminates many public finance statistics via online bulletins and publications.
These statistics are produced along with the national legal framework
Some of the statistics, mainly debt figures, are produced and announced according to the «international standards» to enhance the comparability with other economies.
Other statistics disseminated at the Web;
Debt payment realizations
Debt payment projections
Budget financing statistics
Cash realizations
Data on Treasury receivables
Data on State Owned Enterprises and Busines (income statement, balance sheet, duty loses, employee statistics etc) -Statistics on insurance sector (income statements and balance sheets of companies, data on premiums and other main indicators)
Data on direct investments

12. Debt statistics compiled for international organizations under SNA93
Central Government Debt for PSD (OECD & Worldbank, PSDS Guide < SNA 2008 & BPM6)
Central Government Debt for SDDS (IMF, SDDS Guide < GFSM 2001)
Central Government Stock of Debt Securities (BIS, HSS < SNA 2008)
Maastricht Debt for EDP Tables (Eurostat, CR479/2009 < ESA95)
Government Guaranteed Debt For EDP Questionnaire (Eurostat, CR479/2009 < ESA95)
Central Government Debt for GFS Tables (IMF, GFS Manual 2001 < SNA93)
Gross external debt of Turkey for SDDS (IMF, EDS Guide < SNA93 & BPM5)
PSD: Public Sector Debt
SDDS : Special Data Dissemination Standart
BIS: Bank for International Settlements
HSS: Handbook on Securities Statistics
EDP: Excessive Deficit Procedure
GFS: Government Finance Statistics
Council Regulation 479

13. Central Government Total Debt for PSDS
Responsible Institution : Turkish Treasury
Reported to: OECD and Worldbank, member of database since Dec. 2010
Institutional Coverage : Central Government
Data : Debt Stock
Frequency : Quarterly
Period : 2005Q Q1
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems
Manual : Public Sector Debt Statistics Guide, 2011 < SNA 2008

14. Central Government Total Debt for SDDS
Responsible Institution : TURKSTAT
Reported to : IMF, member of database since Aug. 1996
Institutional Coverage : Central Government
Data : Debt Stock
Frequency : Monthly
Period : 2013M6 – 2013M7
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems
Manual : The Special Data Dissemination Standard, Guide for Compilers and Users < GFSM 2001 < SNA93

15. Central Government Stock of Debt Securities
Responsible Institution : Central Bank
Reported to: Bank for International Settlements, member of database since Apr. 2010
Institutional Coverage : Central Government
Data : Stock of Debt Securities
Frequency : Quarterly
Period : 2005Q1-2013Q1
Classifications: by original maturity, by day to maturity, by instrument type, by currency of denomination, by residence of creditor
Data Source : Administrative Register, Treasury Domestic and External Debt Information Systems
Manual : HSS < SNA2008 & BPM6

16. Maastricht Debt for EDP Tables
Responsible Institution : TURKSTAT
Reported to: Eurostat, member of database since 2001
Institutional Coverage : General Government
Data : Outstanding Debt
Frequency : Yearly
Period :
Valuation : Face value (as defined in CR479/2009 )
Classifications: by institutional sector, by instrument type
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems (for debt of central government), CBRT Electronic Data Delivery System and Treasury External Debt Information System (for debt of local governments), Turkish State Mint (for Currency and Deposits), Information System of Public Sector Treasurership (for holders of debt securities, for consolidation purpose), Turkish Employment Agency (as holder of debt securities, for consolidation purpose)
Manual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009

17. Government Guaranteed Debt for EDP Questionnaire
Responsible Institution : TURKSTAT
Reported to : Eurostat, member of database since 2001
Institutional Coverage : General Government
Data : Stock of Treasury Guaranteed Debt, amounts of new guarantees provided, guarantees called (undertaken), repayments relating to guarantees called, write-offs by Government, fees collected for providing Guarantees, Amounts included in the starting line of EDP 2A via Risk Account
Frequency : Yearly
Period :
Classifications: By institutional sector
Data Source: Administrative Register, Treasury External Debt Information Systems
Manual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009
Legal base for methodology: ESA 95
Legal base for processes: CR479/2009

18. Central Government Debt for GFS Tables
Responsible Institution : Ministry of Finance
Reported to: IMF, member of database since Sep. 2011
Institutional Coverage : Central Government
Data : Outstanding Debt and Receivables
Frequency : Yearly
Period :
Classifications: By instrument
Data Source: Administrative Register, Treasury Domestic Debt and External Debt Information Systems, CBRT for market price of Domestic Debt Securities, Reuters for market price of Eurobonds, Receivables Management and Information System.
Manual: Government Finance Statistics Manual, 2001 < SNA93

19. Gross external debt of Turkey for SDDS
Responsible Institution : Turkish Treasury
Reported to : WB, member of database since Aug. 1996
Institutional Coverage : All sectors of economy
Data : Outstanding Debt
Frequency : Quarterly
Period : 2012Q4 – 2013Q1
Classifications: By sectors (general government, central bank, banking sector, other sectors, direct investment) by original maturity, by instruments.
Data Source: Administrative Register, Treasury External Debt Information Systems, CBRT for private sector external debt.
Manual: External Debt Statistics Guide for Compilers and Users, 2003 < SNA93 & BPM5

20. New Adjustments Required to Implement SNA2008 for Current Debt Statistics
Change in Sector Classification
Change in Coverage of Debt Instruments
Change in Valuation
Other Changes

21. Change in Sector Classification
The quantitative criterion is applied to check if a publicly controlled non-financial unit is able to undertake a market activity. A market producer must cover through sales more than %50 of its production costs. If a unit is not a market producer, it must be classified within general government sector
Current System
The «Financial Accounts Working Group», a group of co-worker agency, Treasury, CBRT, MoF and TURKSTAT was established and has been working cooperatively since 2008
The principles and procedures of the compilation and dissemination of general government financial statistics is determined with a regulation jointly prepared by this working group and revised every three years period.
Change is not in the definition of sales but it is in the definition of costs.
In NSA 2008, “net interest charges” is added to the production cost as a measure of “cost of borrowed capital”.

22. Change in Scope of Debt Instruments
Stock of Debt Under ESA95 = AF2 (Currency and Deposits) + AF3 (Securities other than shares) + AF4 (Loans) + AF5 (Shares and other equity, if any) + AF6 (Insurance technical reserves, if any) + AF7 (Other accounts payable)
Stock of Debt Under ESA2010 = AF2 (Currency and Deposits) + AF3 (Debt Securities) + AF4 (Loans) + AF5 (Equity, if any) + AF6 (insurance, pensions and standardized guarantee schemes, if any) + AF7 (Financial Derivatives) + AF8 (Other accounts payable)
The financial assets boundary has been expanded to include a wider coverage of financial derivative contracts.

23. Change in Scope of Debt Instruments
Maastricht Debt under CR479/2009 < ESA95 = AF2 (Currency and Deposits) + AF3 (Debt Securities / excluding AF34; Financial Derivatives) + AF4 (Loans)
Maastricht Debt under proposed changes in CR479/2009 = AF2 Currency and Deposits + AF3 Debt Securities + AF4 Loans + AF 71 Financial Derivatives other than employee stock options (AF34 in ESA95) (?) + AF 81 Trade Credits and Advances (AF71 in ESA95) (?) + AF 6 Insurance, pension and standardised guarantee schemes (-)
EDP tables are compiled compatible with SNA93 but
there is a Commity Regulation which defines Maastricht debt slightly different from the one in SNA93 (ESA 95).
So the instrument coverage and the valuation is slightly different from the definitions in SNA 93.
But there is a discussion among the EU members about the instrument coverage and
the valuation of Maastrich Debt after implementetion of ESA2010.
EU members still have a problem of collecting the data about insurance and pensions.
Also, the data on trade credits are not still perfect. So they are arguing to include at least “arrears” arising from the trade credits into definition of debt.

24. Change in Valuation
There is no change in valuation of debt instruments in SNA2008 (ESA2010). The stock of government liabilities should be recorded in national accounts at their market value at the end of the accounting period, in the closing balance sheet.
So, the valuation technique for central government debt (for PSD), stock of debt securities (for BIS), Central Government Debt for GFS Tables, Central Government Debt for SDDS, Gross External Debt for SDDS will NOT change.
But, valuation for Maastricht Debt may change within the proposed changes in CR479/2009 from “face value” to “market value” (or nominal value).

25. Things to do for SNA2008 Transformation in Debt Statistics
Review non-financial public institutions in accordance with quantitative criteria
Revision of the «Regulation on General Government Financial Statistics» in coordination with Financial Accounts Working Group
Review of debt instruments; especially AF8 other accounts payable and decide its data source
Revise the measurement of debt reported to international institutions, except government debt for GFS,
Establishing the necessary infrastructure to provide debt at market value, through existing Treasury information systems.
Continue close inter-agency coordination
Ensure the sufficient and sustainable IT and human resources

26. Thank you very much for your attention..