The Icelandic Ministry of Finance has released today the Treasury’s Medium Term Debt Management Strategy for 2012-2015, which sets forth the government’s plans for debt financing plans for the specified period.
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It provides a description of the composition of the debt portfolio, inherent risk factors and contingent liabilities. The institutional structure regarding debt management is also described, as stated in a press release from the ministry.
The strategy is now published for the second time and includes two changes to objectives and guidelines for debt management.
The Ministry of Finance is responsible for the central government’s debt management, sets the strategy and makes decisions regarding debt issues.
A special section within the Central Bank of Iceland, Government Debt Unit, is responsible for the implementation of the treasury’s debt management policies.
The government’s overall debt management objectives are:
– To ensure that, over the medium to long term, the government’s financing needs and financial obligations are met at the lowest possible cost that is consistent with a prudent degree of risk.
– To establish a sustainable debt service profile consistent with the treasury’s medium-term payment capacity.
– To promote the maintenance and further development of efficient primary and secondary markets for domestic treasury securities.
– To broaden the government’s investor base and diversify funding sources.
The Medium-Term Debt Management Strategy will be updated and revised annually.
Click here to read more about the Ministry of Finance’s debt statements.