INTOSAI WORKING GROUP ON PUBLIC DEBT

Kyiv Ukraine7 – 8 October 2009

The Bulgarian Debt Management Office

BNAO Svilena Simeonova

Consolidated public debt

According to the Public Debt Act, the consolidated public debt comprises: Government debt Municipal Debt and Social-insurance funds’ debt

Public debt(1)

The public debt is undertaken through: Issues of state securities State loan agreements

The public debt limit is defined each year stipulated in the State Budget Act

The public debt is managed on the basis of a three-year strategy, approved by the Council of Ministers

Public debt(2)

A part of the public debt are the financial obligations guaranteed for the account of the state (state- guaranteed debt)

The debt of the Bulgarian National Bank is not considered a public debt

Financial obligations undertaken by private persons are not considered public debt

The Bulgarian Debt Management office(1)

Managed by the Minister of Finance Has the status of a directorate within

the Ministry of Finance Has been established by a

Regulation of the structure of the Ministry of Finance

Performs functions on the grounds of the Public Debt Act

The Bulgarian Debt Management office(2)

The Minister of Finance signs on behalf of the Government the state loan agreements

A Council of Ministers' decision is prior to signing of these agreements

The Minister of Finance issues state securities

The Bulgarian National Bank is a public debt agent determined by an agreement

The Bulgarian Debt Management office(3)

In relation to the municipal debt powers are assigned to: The Municipal council defines the

maximum amount of debt and decides on incurring of debt

The Mayor of the municipality submits proposals to the municipal council for incurring of debt

The Bulgarian Debt Management office – information and reporting(1)

The Minister of Finance maintains an official public debt register

Each month information is published in an official bulletin on the web site of the Ministry of Finance

The Bulgarian National Bank maintains public debt servicing systems

The Bulgarian National Bank registers and monitors the financial obligations of local residents to non-residents

The Bulgarian Debt Management office – information and reporting(2)

All municipalities have the obligation to present to the Ministry of Finance information on the debt incurred by them

The Ministry of Finance establishes a central municipal debt register to which public access is provided

The mayor of the municipality submits an annual report for the municipal debt status to the Minister of Finance with a copy to the Bulgarian National Audit Office

The Bulgarian Debt Management office – information and reporting(3)

The Minister of Finance drafts an annual report on the public debt status

The annual report is reviewed by the Council of Ministers and submitted to the National Assembly

This report is a part of the state budget execution report

BNAO – PDMO activities BNAO conducts audit on the public debt on an

yearly basis The main audit objectives are:

Evaluation of the results of the public debt management

Comparison with the main economic budget indicators

Evaluation of the implementation of the public debt management strategy

Evaluation of the PDMO function and capacity