Director of the Directorate
Ms. Milena Boikova
Contact details:
102 "G. S. Rakovski" Str.
1040 Sofia, Bulgaria
telephone: (+359) 2/9859 2452
e-mail: govdebt@minfin.bg
Directorate's main task
Government Debt and Financial Markets Directorate exercises control over the amount, dynamics and service of all financial liabilities assumed on behalf and at the expense of the state, which are a liability of the state and which cover domestic and foreign government debt. It plans, organizes and controls the activities related to the implementation of the issue policy in the domestic market and the measures for domestic government debt management. The Directorate provides for the carrying out of activities connected with financial markets' monitoring, analysis and institutional development, as well as with the transposition of the EU law on financial services into the Bulgarian legislation.
The Directorate performs the overall cooperation with international financial and credit institutions to ensure the necessary external financing and support in line with the needs of the state budget and the Bulgarian economy. It coordinates the international multi- and bilateral financial cooperation and participates in the implementation of Bulgaria's policies in the field of Official Development Assistance (ODA). It provides institutional support for the implementation of investment projects of significant public interest in the country in respect of financial conditions.
Issues Division
- Carries out the activities related to the announcement of any forthcoming auctions for SG issuance on the basis of Ordinance No 5 on the terms and procedure for issuance, acquisition and payment of government securities; organizes the placement of issues in the foreign markets - prospects and activities together with the fiscal agents; issues GS intended for sale to individuals and determines the buy-back prices;
- Draws up monthly and annual calendars for domestic debt issues; realizes transactions for government debt buy-backs, swaps and restructuring in line with the Debt Management Strategy and the conditions and trends on the GS market; keeps active dialogue with the participants in the government debt market;
- Carries out the activities related to the procedure for assessment and selection of GS primary dealers and to the implementation of the approved Criteria on the assessment and selection of GS primary dealers together with BNB. It explores the EU requirements, standards and rules on GS market and adapts the local regulations;
- Draws up the methodology and legal base for the government debt; prepares analyses of the amount and structure of the domestic debt by type of instruments, as well as monitors and analyzes the developments on the domestic debt instruments market;
- Keeps track of the international and domestic capital markets in the form of selecting and processing the information needed for the activity of the Directorate; negotiates on activities related to the fiscal agency of the Bulgarian National Bank.
Strategies, Analyses and Statistical Reporting Division
- Analyzes the key macroeconomic indicators in the context of their relation with the applied debt strategies and debt policy of the government; develops proposals and scenarios for debt management - buy-backs, swaps, restructuring, etc.; evaluates the proposals for funding and develops scenarios and analysis of its influence on the amount and structure of the debt; prepares the required estimates and documents concerning debt funding and cost in connection with the development of the three-year budget forecast and the State Budget Act for the relevant year;
- Monitors the amount, structure and development of the debt and draws up a Debt Management Strategy and an Annual report on the state of the debt; prepares, carries out, controls and coordinates with the relevant institutions the process of Council of Ministers' review and approval of the projects applying for funding from government loans and from issuance of a government guarantee for the relevant year under the procedure of the Ordinance adopted by CMD 28/07.02.2003 on the grounds of the Government Debt Act;
- Prepares notification tables for the debt in line with the requirements of Eurostat; prepares and regularly submits to Eurostat and BNB quarterly consolidated data on the debt of the general government sector and its sub-sectors;
- Draws up information and tables required for the needs of ECB; regularly prepares statistical information about the debt in connections with our country's commitments under SDDS; prepares and regularly updates the data on the government debt in presentations on the state of the country's economy as prepared on the occasion of the regular visits of rating agencies; prepares the Convergence Program of Bulgaria in its part referring to the government debt;
- Provides and exchanges information about government debt parameters between the Ministry of Finance and other state administrations, BNB, NSI; regularly prepares and provides information to the National Audit Office on the utilization and payments under the external government and government-guaranteed debt.
Coordination, Management and Dissemination of Information on Government Debt Division
- Monitors, on an ongoing basis, the amount, structure and development of the government debt, the consolidated government debt and the government guarantees; prepares regular publications and data bases providing the necessary public information about the state and dynamics of the government debt, as well as prepares and issues a monthly Government Debt bulletin and Government Debt Annual Overview;
- Analyzes and prepares information about the state and development of the debt of municipalities and social security funds, as required for the preparation and provision of official data on the consolidated government and government-guaranteed debt;
- Takes part in the preparation of various information materials, reports and presentations intended to provide different, in terms of content and scope, information on the government debt to international organizations and forums;
- Prepares, coordinates and provides for the information exchange between the Ministry of Finance and other financial institutions and state organizations on debt-related issues; takes part in the drafting of concepts and legislative acts related to the service of old government liabilities; takes part in working groups and committees in regard to the drafting of bylaws and various legislative acts in the framework of its competence.
Payments Division
- Keeps the Official Register of government debt; keeps database, incl. exchange rates and interest rates in the register of government debt from the information system of REUTERS with the daily rates in the international markets;
- Summarizes and keeps track of the performance of the indicators laid down in the State Budget Act in regard to the external and domestic funding and the covering of the debt service expenses;
- Prepares a calendar of the forthcoming debt payments with the purpose of planning the needed resources by date and currency of the payments by the Treasury Directorate; keeps track of and specifies, on a monthly basis, the data reported in the cash performance of the Central Republican Budget in line with the information contained in the debt register;
- Prepares, on an annual basis, a report on the performance of the parameters laid down in the State Budget Act in the sectors related to the funding of the budget deficit and the interest expenses on the government debt;
- Controls and registers the entry of funds under any new credit agreements concluded and GS issues;
- Carries out the activities connected with the registration, monitoring and service of the domestic and external government debt together with the Bulgarian National Bank, Bulbank and other fiscal agents;
- Services the government securities issued as a result of the structural reform under the procedure of individual laws and decrees of the Council of Ministers, incl. GS issued under the procedure of the Act on Settlement of Non-Performing Loans and GS issued under the procedure of Articles 8 and 9 of the Act on State Protection of Deposits and Accounts with Commercial Banks in Respect Whereof the Bulgarian National Bank Has Submitted a Petition in Bankruptcy;
- Services the loans included in the scope of Bulgaria's external debt /incl. Paris Club, London Club, Euro-bonds, G-24, European Union, World Bank, Japan, International Monetary Fund, etc./; this activity includes organization of the process of making the payments /principal, interest and charges/ and reporting of the parameters of the debt transactions made;
- Controls the movement of the government investment loans by the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and other creditors, incl. the payments and utilizations under the budgets of the various Ministries and organizations related thereto.
Regulation of Financial Markets Division
- Prepares and summarizes analyses of the Community law and takes part in the drafting of legislative acts in connection with the harmonization of the Bulgarian legislation with the Community law on financial markets' regulation; takes part in the development of and summarizes proposals to the Minister of Finance for making changes to the Bulgarian legislation in view of its harmonization with the requirements of the Community law;
- Prepares drafts of acts of the Council of Ministers in connection with the harmonization of the Bulgarian legislation with the Community law on financial markets' regulation, and prepares the materials for the said acts' submission for review to the Council of Ministers;
- Prepares, summarizes and provides legal opinions on bills and bylaws, sent for agreement, as to their compliance with the acquis on financial markets' regulation as well as on financial markets' regulation in connection with the participation of Bulgarian representatives in ECOFIN, the Economic and Financial Committee and the Financial Services Committee, after coordinating those with the national authorities competent in the area of financial markets;
- Takes part, on an expert level, in the work of the working groups functioning to the Council on EU Affairs on issues in the area of financial markets' regulation; takes part in working formats to the EU institutions in connection with the analysis, drafting and application of the Community law on financial markets' regulation; takes part, on an ongoing basis, in the work of European and other international bodies and structures as well as in initiatives and discussions; provides assistance for the performance of the current tasks connected with the activity of the Consultative Council on Financial Stability, the Standing National Group for Financial Stability; keeps contact and works together with other institutions in the area of financial stability;
- Keeps active relations, cooperates and consults with the national authorities competent in the area of financial markets with the aim to assist the Minister of Finance in formulating and coordinating the government policy in the area of financial markets; establishes and keeps contact with the relevant structures of other EU Member States; organizes seminars on issues related to the transposition of the Community law on financial markets in the national legislation.