Government debt risk mitigation

Only one single debt management entity (MoF/treasury) can carry out central government borrowing according to legislation

Review of legislation and reporting on local government and SOE debt and borrowing.

The annual budget law defines the limits for annual borrowing

Review of legislation and reporting on local government and SOE debt and borrowing.

The annual budget law defines the limits for state loan guarantees

Review of legislation and reporting on local government and SOE debt and borrowing.

There are either legal limits within which local government can borrow, or local government can only borrow with the formal consent of the government.

Review of legislation and reporting on local government and SOE debt and borrowing. The criterion is met if two conditions are fulfilled: (1) There are either legal limits within which local government can borrow, or when local government can only borrow with the formal consent of the government. (2) All local government entities that are permitted to borrow must report on their debt and borrowing at least twice a year.

All local government entities that are permitted to borrow report on their debt and borrowing at least twice a year

Review of legislation and reporting on local government and SOE debt and borrowing.

All state-owned enterprises (SOEs) report on their debt and borrowing at least twice a year

Review of legislation and reporting on local government and SOE debt and borrowing.

Stock of general government debt that will mature in the next year (%)

Review of legislation and reporting on local government and SOE debt and borrowing. Calculated by dividing the stock of general government debt that will mature in the next year by the total of general government debt. Points are allocated based on the percentage of the stock of general government debt that will mature in the next year (x): • x > 25% = 0 points. • 25% ≥ x > 10% = linear function. • x ≤ 10% = 1 point.

General government debt held in foreign currency (%)

Review of legislation and reporting on local government and SOE debt and borrowing. Calculated by dividing general government debt held in foreign currency by the total of general government debt. Points are allocated based on the percentage of general government debt held in foreign currency (x): • x > 25% = 0 points. • 25% ≥ x > 10% = linear function. • x ≤ 10% = 1 point.

Floating rate debt in the stock of general government debt (%)

Calculated by dividing floating rate debt in the stock of general government debt by the total of general government debt. Points are allocated based on the percentage of floating rate debt in the stock of general government debt (x): • x > 25% = 0 points. • 25% ≥ x > 10% = linear function. • x ≤ 10% = 1 point.