TH E U N D E R S E C R E TAR IAT
OF TREASURY
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
T.C. Undersecretariat
The
Başbakanlık Hazine
Of Treasury
Müsteşarlığı
Slide 1
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
The Undersecretariat Of Treasury
Slide 2
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;
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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
The Undersecretariat Of Treasury
Slide 3
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
The Undersecretariat Of Treasury
Slide 4
Directorate General of Public Finance
Debt and Risk Management Policies
Principles
 Sustainability
 Transperency
 Accountability
 Predictability
The Undersecretariat Of Treasury
Slide 5
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
The Undersecretariat Of Treasury
Slide 6
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
The Undersecretariat Of Treasury
Slide 7
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.
The Undersecretariat Of Treasury
Slide 8
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.
The Undersecretariat Of Treasury
Slide 9
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
The Undersecretariat Of Treasury
Slide 10
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.
The Undersecretariat Of Treasury
Slide 11
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)
The Undersecretariat Of Treasury
Slide 12
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 : 2005Q4 - 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 Debt and
External Debt Information Systems
Manual : Public Sector Debt Statistics Guide, 2011 < SNA 2008
The Undersecretariat Of Treasury
Slide 13
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
The Undersecretariat Of Treasury
Slide 14
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
The Undersecretariat Of Treasury
Slide 15
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 : 2000 - 2012
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
The Undersecretariat Of Treasury
Slide 16
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 : 2009 - 2011
Classifications: By institutional sector
Data Source: Administrative Register, Treasury External Debt Information
Systems
Manual : Manual on Government Deficit and Debt <ESA 95 & CR479/2009
The Undersecretariat Of Treasury
Slide 17
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 : 2008 - 2011
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
The Undersecretariat Of Treasury
Slide 18
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
The Undersecretariat Of Treasury
Slide 19
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
The Undersecretariat Of Treasury
Slide 20
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.
The Undersecretariat Of Treasury
Slide 21
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 Undersecretariat Of Treasury
Slide 22
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 (-)
The Undersecretariat Of Treasury
Slide 23
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).
The Undersecretariat Of Treasury
Slide 24
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
The Undersecretariat Of Treasury
Slide 25
Thank you very much for your attention..
The Undersecretariat Of Treasury
Slide 26