Republic of Portugal. PORTUGUESE SOVEREIGN DEBT THE ROLE OF IGCP. June 2007. IGCP – Public Debt and Cash Management. IGCP’s mission is to manage, in an integrated way, the cash balances and the direct debt of the Republic of Portugal, such a way as:
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PORTUGUESE SOVEREIGN DEBT
THE ROLE OF IGCP
The debt management agency
The Audit Committee is composed of a chairman and two permanent members, appointed by the Minister of Finance, with the Chairman being nominated by the Inspectorate-General of Finances, while one of the permanent members should be an official chartered accountant.
The Audit Committee is responsible for following up and controlling the financial management of the IGCP and the Stabilisation Fund of the Public Debt, as well as supervising the respective accounting procedures.
However being part of the public administration, the IGCP employees are not under the civil servants regime (labour contracts are established under the general labour law) and a corporate model has been adopted for its internal organization.
There is a Markets’ Committee, composed by the Directors, the heads of the Debt and Operations Departments and of the Financial Control, Research, Trading-room and Markets units, that meets once a week to analyse market developments, treasury forecasts, the position of the real debt portfolio against the benchmark and to define guidelines for the activity during the next week.
The Financial Control unit is responsible for all aspects related with risk and performance evaluation, internal control, procedures definition and internal auditing.
Board of Directors
Debt Management Department
Issuing and Markets Unit
Research and Reporting
IGCP – Public Debt and Cash Management
A flexible, entrepreneurial-like organisation
Debt Management Guidelines
Portugal has a lower debt burden than euro area average and better than “core” Europe and other rating peers
General government gross debt - 2006
Source: Eurostat (latest figures according to Excessive Deficit Procedures)
Debt structure per instrument
Gov. Bonds (gross) and T.Bills (net) issuance
Fixed-rate Gov. Bonds
The strategic pillars:
The most important driving factor:
A market oriented borrowing strategy
Active debt management -
derivatives and buy-backs
To overcome market inefficiencies
To widen the investor base
Following best practices
The role of Financial Intermediaries
*Turnover with final investors reported by Primary Dealer (excluding intra-Primary Dealer trading) - 2006
Fax: +351 21 7993795
Web site: igcp.pt
Reuters pages: IGCP01
Bloomberg pages: IGCP
Further information on the Portuguese economy can be obtained from:
Further information on the Portuguese secondary market can be obtained from:
Economic Research and Forecasting Department at the Ministry of Finance
National Statistics Office
Banco de Portugal (Central bank)
Reuters pages: PT/MTS1
The information and opinions contained in this document have been compiled or arrived at from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. All opinions and estimates contained in this document are published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise or judgment by a recipient and, therefore, does not form the basis of any contract or commitment whatsoever. IGCP does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.