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Table A. Central government Debt

Table A. Comprehensive Framework

Fiscal Sector

CORE FRAMEWORK: Central Government Debt
    National Descriptor (as applicable):
ENCOURAGED EXTENSION(S) (as applicable):
    National Descriptor (as applicable):
National Methodological Publication (as applicable):

 

I. Analytical Framework, Concepts, Definitions, and Classifications
Analytical Framework, Concepts and Definitions

According to Article 8 of the Regulation implementing the Law on the SISTAFE – Government Finance Administration System (approved 9/2002), the Public Treasury subsystem is responsible for carrying out public debt operations approved by higher authorities, and for managing the resulting domestic and external public debt. Within the National Treasury Directorate, the Public Debt Department is responsible for compiling public debt data, both domestic and external, in cooperation with the Bank of Mozambique (BOM).

 

The Public Debt Department generally considers debt if the repayment period is more than one year.( medium and long term debt) The public debt data include both domestic and external debt.

The data on domestic public debt cover loans to the central government granted by domestic banks or financial institutions.

 

The data on external public debt are classified by borrower and creditor (multilateral, bilateral). External debt is classified by maturity: short-, medium-, or long-term.



Classification System

The definition of debt, from the standpoint of the borrower, and of public external debt resulting from loans obtained by the central government for use in projects under the control of the central or local government, autonomous public entities, or public enterprises, is generally consistent with the internationally accepted concept of debt found in the 1986 Manual on Government Finance Statistics. External debt is defined in accordance with the IMF publication External Debt Statistics: Guide for Compilers and Users.

This definition also covers debt guaranteed by the government but obtained directly from governmental or private sector institutions by local governments, autonomous public entities, and public or private enterprises. The government is not directly liable for this type of debt, but it does represent a contingent liability because the government, as guarantor, must assume the obligation in the event of default.

 

The stock of debt calculation pertains only to the central government, excluding autonomous agencies. Data on public debt service are disseminated in the budget execution reports, and annual data on the stock of debt is presented in the Conta Geral do Estado (CGE) [government annual report].

 

The debt data are compiled according to the debt holder and are broken down by type of instrument (tradable and nontradable).

 

Government domestic debt is broken down by holder into:

·         Central bank

·         Other banks and financial institutions

·         Other

·         Treasury bonds

 

Government external debt is broken down by holder into:

·         Multilateral

·         Bilateral

 OECD

         Paris Club

         Other

 


II. Scope of the Data
Unit Coverage

The data in the Relatorio de Execucao de Orcamento de Estado (RE) and CGE apply only to the central government.

Transaction Coverage
All transactions of the central government excluding autonomous institiutions.

Geographic Coverage
The data cover the entire national territory.

Unrecorded Activity (as relevant)
No records are kept on autonomous institutions and local government.

Periodicity
Public debt data are compiled monthly and disseminated quarterly and annually.

Timeliness

Quarterly data are disseminated within 45 days after the reference quarter, and annual data are disseminated in the CGE within one year after the reference year.


III. Accounting Conventions

Debt is recorded at the time of the transaction (i.e., disbursements and payments of principal and interest)

 

Amounts in foreign currency are converted into U.S. dollars and into meticais based on the daily exchange rate provided by the central bank. The end-year stock of debt denominated in foreign currency is calculated [converted  into dollars or meticais?] using the average exchange rate for the year.


IV. Nature of the Basic Data Sources

To generate quarterly data, the Public Debt Department uses the computerized debt recording program known as the Commonwealth Secretariat Debt Recording and Management System CS-DRMS.

 

The Public Debt Department receives data on disbursements from the creditor; the data on payments are provided by the BOM.

 

At the end of the year, the stock is reconciled with the creditor’s information and revalued at the annual average exchange rate.


V. Compilation Practices                                                                                                         

The debt data compiled and diseminated refers to gross central government debt.

Loans included (only the portion of the loan disbursed is considered debt) have an original maturity more than one year.

 

Consolidation: In compiling stock of debt data, the debt securities issued by a unit and held by another unit of the central government are not consolidated.


VI. Other Aspects
Government debt data is compiled on a calendar year basis.                                                                

VII. Plans for Improvement
Recent Improvements
Work was recently done to reconcile bilateral debt with non-Paris Club members.

Short Term

  • Purchase of a new computer program to record debt (CS-DRMS 200 Plus), including the domestic debt component.
  • Training in external debt compilation methodology and management.
  • Continuation of the task of reconciling debt data with creditors on a regular basis (to be determined).
  • Expansion of the coverage of public debt statistics to include the unsecured debt of autonomous institutions.

Medium Term

  • Transfer of the public external debt recording functions the BOM to the Ministry of Planning and Finance   

Technical Assistance/Financing Needs/Other Prerequisites

    Short Term
    • Commonwealth technical assistance for the installation and monitoring of the CS‑DRMS  2000 Plus system;

    Medium Term

    • Human resources training;
    • Additional staff and material resources needed;
    • External financing for training and the purchase of equipment.