Redaktor:ARDAL/pieskovisko

The Seat of the Agency on Radlinského street in Bratislava

The Debt and Liquidity Management Agency is a state administration body of the Slovak Republic ensuring government debt and liquidity.

History

The Debt and Liquidity Management Agency (hereinafter referred to as the „Agency“, „DLMA“) was established as a part of public finance management reforms. The goal was to create a modern system of management of the state debt and liquidity management following the best international practice of the European Union member countries. The reform of public finance management began in 2002. A State Treasury system was established within the frame of the reform of this sector. It is formed by the Ministry of Finance of the Slovak Republic, the State Treasury, DataCentrum and the Debt and Liquidity Management Agency. The Agency was established according to the provision of Article 14 of the Act No. 291/2002 Coll. on State Treasury and on changes and amendments of some acts on 1 February 2003 as a budget organization linked to the state budget by the budgetary chapter of the Ministry of Finance of the Slovak Republic. The Agency is a state administrative body and at the same time trader of securities according to the Act No. 566/2001 Coll. on Securities and Investment Services and on changes and amendments of some acts under later regulation.

Activities of the Agency

The main role of the DLMA within the system of the State Treasury is to secure activities related to the state debt management, the state liquidity management and the management of the whole system of the State Treasury, the management of financial risks and pursuance of financial operations in the financial market, in particular:

• ensuring professional debt and liquidity management, i.e. the Agency optimizes the debt structure and related costs on the basis of market analysis, debt portfolio analysis and executed system of risk management,
• enabling the separation of the operative debt and liquidity management from formulating strategy and control abidance to strategic frames and rules
• improving communication with the financial market and the capital market and investors – in cooperation with the Ministry of Finance of the Slovak Republic and other institutions acting on the financial market and the capital market,
• increasing liquidity and transparency of the government securities market,
• ensuring the flexibility of the operative state debt management on the international level
• supporting further integration of Slovak financial market and financial management of public finance with other countries of the European Union and the Eurozone.

In accordance with valid legislation, the Agency provides in the name of the Ministry of Finance of the Slovak Republic following activities:

• organizing and realizing the redemption of the state debt,
• securing the issuance of government securities,
• providing the settlement of securities and trades,
• providing the payment of nominal values and yields from public securities,
• providing secure transference of government securities,
• providing financial operations with investment tools associated with the state debt management including financial derivates operations associated with the risk management of the state debt and liquidity,
• providing buy back of the unpaid state debt,
• providing premature payment of the state debt, if contract documentation or issuance conditions enable it,
• providing financial operations with investment tools including operations with financial derivates on the financial market to temporary bypass discrepancy between incomes and expenses of the state budget and to secure the liquidity system of the State Treasury.

Government Debt Management Strategy

The government debt management strategy is a basic strategic document defining the frameworks of government debt management. It defines basic government debt management rules for a four-year period. The proposal strategy is prepared by the Ministry of Finance of the Slovak Republic in cooperation with the Agency. This proposal is subsequently approved by the Slovak Government. The main objectives of the government debt management strategy:

• meeting the refinancing, interest rate and foreign currency risk parameters of the state debt,
• optimizing the cost of the state debt service in the medium and long term horizon,
• standardising the attributes of the new government issues,
• optimising the structure of non-marketable debt,
• diversification of the investor base,
• improving the infrastructure of the state debt (primary dealers, ISDA contracts, brokers, improving the conditions of the settlement etc.).

The Director of the Agency

The Agency is represented and managed by a director appointed by the Minister of Finance of the Slovak Republic. Daniel Bytčánek has been the current director of the DLMA since 2003.

The Seat of the Agency

The headquarters of the Agency is Bratislava.

Address: Radlinského 32 813 19 Bratislava Slovak republic

www.ardal.sk