The main functions of the Debt Management Office include:
issuing Treasury Bills and Malta Government Stocks and manage all operations relating to them until redemption
monitoring disbursements on foreign loans
initiating action on debt service payments on foreign loans in a timely manner
organising and managing a loan database covering both domestic and external debt
collecting data on public sector debt including those of public entities where the borrowing has not been guaranteed by Government
conducting debt and risk analysis on an ongoing basis
preparing annual status reports on public sector debt
issuing and managing government guarantees on domestic and foreign borrowing of public entities
managing lending and on-lending operations of the Government
In line with best practice in developed countries, the Debt Management Office is structured into front, middle and back offices, which are responsible for resource mobilisation, debt and risk analysis, and settlements respectively.
The main functions required for resource mobilisation are to:
implement the borrowing plan based on the strategy approved by Government
mobilise long term resources for the financing of projects and deficits from local and foreign capital markets
mobilise short term resources from financial markets to meet liquidity requirements
process applications for government guarantees, issue guarantees and conclude agreements with borrowers
The main functions required for debt and risk analyses are to:
undertake frequent and regular portfolio analyses to assess future debt service prospects and propose action that should be taken to overcome them
prepare debt sustainability analyses to assess the long term sustainability of projected public sector borrowing levels
assess and manage market, rollover, liquidity, credit, settlement and operational risks in the loan portfolio
prepare a borrowing strategy for implementing the annual borrowing plan involving choices between domestic and foreign borrowing, foreign markets to be accessed, currency of borrowing, and interest rate and maturity structures
prepare or provide inputs on public debt to periodic economic and financial reports and data to the Central/General Government Statistics and Reporting Section
The functions undertaken by settlements include to:
monitor the implementation of loan agreements including the utilisation of loans and obligations of Government
ensure that sinking fund contributions are made in accordance with the approved appropriations
monitor all contingent liabilities and ensure that adequate loan loss provisions are made in the budget
monitor the performance of loan guarantees issued by Government and report to the Ministry of Finance and Economic Services
The Central/General Government Statistics and Reporting Section within the Debt Management Office is responsible for the production of monthly, quarterly and annual statistics regarding Central and General Government Debt. It also prepares regular reports on the status of debt that are required by the Government, Central Bank of Malta, investors/lenders, international organisations and the public. This Section is also be responsible for the maintenance of an accurate and up-to-date loan database.
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