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Sovereign Debt Markets in the EU
Mediterranean Partner Countries
2005
This Handbook on Sovereign Debt Markets in the EU Mediterranean Partner Countries has
been prepared by the EIB Capital Markets Department. Its purpose is to provide a user friendly
guide to the Government debt markets in the countries where FEMIP is active, with a view to
stimulating their further development.
The document is based on information gathered from the Debt Management Offices and
other Government authorities of the ten EU Mediterranean Partner Countries. The Bank
acknowledges with gratitude the considerable efforts made by them.
Although the authorities’ replies have been reproduced as faithfully as possible, the European
Investment Bank accepts no responsibility for the accuracy of the information received.
All domestic currency amounts are provided in EUR unless otherwise stated at the rate which
obtained at the time the data was collated. Respondents were requested to use calendar
years where possible. If used, fiscal years are detailed.
Additional copies of the Handbook can be obtained from the EIB Investor Relations Division
(e-mail: investor.relations@eib.org).
Luxembourg, November 2005
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Contents
1. The European Investment Bank
2. People’s Democratic Republic of Algeria
3. Arab Republic of Egypt
4. Israel
5. The Hashemite Kingdom of Jordan
6. Republic of Lebanon
7. Kingdom of Morocco
8. Palestinian National Authority
9. Syrian Arab Republic
10. Tunisia
11. Turkey
12. Summary tables
– Currency regime
– Public debt size/decision-making
– Targets, outstanding debt
– Primary bond market information
– Short-Term Bill issue procedure
– Secondary market liquidity
– Accountability
– Trade, conventions, settlements
– Islamic finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank
Banque européenne d’investissement
www.eib.org
The European Investment Bank is the European Union’s long-term lending institution.
Its main lending priorities outside the European Union include financing investments in Partner
Countries, such as those covered by the FEMIP (Facility for Euro-Mediterranean Investment and
Partnership).
The EIB operates on a non-profit maximising basis and provides funds at close to the cost of
borrowing. The Bank’s consistent AAA rating is underpinned by firm shareholder support, a strong
capital base, exceptional asset quality, conservative risk management and a sound funding
strategy.
In the last ten years the Bank has sought to support the development of local currency bond
markets primarily by acting as a borrower on the debt markets of a number of new EU Member
States and Accession Countries and South Africa. More recently the Bank has started to issue local
currency bonds in new Turkish liras and Mexican pesos.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
EIB Objectives
Currently, EIB lending activity is geared to five operational priorities:
E
Ü conomic and social cohesion and regional development in the European Union.
I
Ü mplementation of the “Innovation 200 Initiative”, a programme designed to
support the development of a knowledge-based, innovation-driven economy.
D
Ü evelopment of Trans-European networks.
E
Ü nvironmental protection and improvement.
S
Ü upport for EU cooperation and development policies with partner countries, in
particular through FEMIP in the Mediterranean region.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
FEMIP Objectives
E
Ü stablished following the Barcelona European Council (March 2002), FEMIP (Facility
for Euro-Mediterranean Investment and Partnership) accords special priority to the
development of private sector economic activity and to projects contributing to
the creation of a favourable climate for private investment. Its aim is to assist the
Mediterranean Partner Countries in meeting the challenges of social and economic
modernisation and improved regional integration, looking ahead to the Euro-
Mediterranean free trade area planned for 200.
F
Ü EMIP represents a major development of the Euro-Mediterranean Partnership. The
Council’s decision to entrust the EIB with strengthening the financial component
of the Euro-Mediterranean Partnership was grounded in the Bank’s long-standing
experience in the region, with a total of EUR 2.bn lent between 94 and 200.
FEMIP’s main objectives are:
≠ F
inancing the private sector and projects that help to create an environment
conducive to private investment;
≠ ncreasing the level of lending in the region, while diversifying the range of
I
financial products available;
≠ E
nhancing dialogue with the partner countries on reforms and appropriate
accompanying measures that will help the region to develop.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
FEMIP Objectives
Ü In order to meet these objectives, FEMIP’s features include:
≠ Short and long-term loans granted directly or through credit lines to finance
economic infrastructure and private companies;
≠ Investments in private equity or semi-private equity, which are to the advantage
of private companies;
≠ New financial products that enable the financing, in particular, of private projects
whose element risk does not correspond to the Bank’s usual criteria;
≠ The promotion of investments in human capital;
≠ T
echnical assistance resources for the design of high quality projects and the
process of economic reform in the region;
≠ O
rganisation of annual meetings of the Euro-Mediterranean Finance Ministers,
prepared for by experts committee meetings;
Ü As a result, between 200 and 2004, FEMIP increased its annual volume of activity
from EUR .4bn to EUR 2.2bn and the private sector now accounts for close to 0%
of this amount.
Ü FEMIP is implemented in close cooperation with all participants in the region’s
development: the European Commission, the banking community in Europe and
the beneficiary countries, the World Bank, IFC, AfDB and other multilateral and
European bilateral development finance institutions.
To strengthen FEMIP’s presence in the region, representative offices have been opened
in Cairo, Tunis and Rabat. The tasks of these offices include: ensuring coordination with
local authorities, borrowers, the banking sector and lenders; helping to identify new
projects, especially those focusing on the private sector; monitoring projects; and
facilitating the implementation of technical assistance.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
FEMIP Offices
Telephone number/
Address Fax Number E-mail Address
, Boulos Hanna Street (+20-2) /
Egypt cairo@eib.org
Dokki, Giza 2, Cairo (+20-2) 4
Riiad Business Center,
aile sud, immeuble , (+22) 4 0 /
Morocco rabat@eib.org
4ème étage, (+22) 9
Boulevard Er-Riad, Rabat
0, Avenue Mohamed V (+2) 2 02 22 /
Tunisia tunis@eib.org
002 Tunis (+2) 2 09 9
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
European Investment Bank – Banque européenne d’investissement
Key Contacts
Note: Currencies of the Mediterranean Partner Countries are covered by the ‘Europe ex-Euro,
Mediterranean, Africa’ funding team.
Position Name Telephone E-mail Address
Number
Director General, René
+2-49 2
Finance Directorate KARSENTI
Director, Barbara
Capital Markets BARGAGLI- +2-49 2
Department PETRUCCI
Head of Division,
(Europe ex-Euro, David
+2-49 220 d.clark@eib.org
Mediterranean, CLARK
Africa)
Deputy Head of
Division (Europe, ex- Richard
+2-49 20 r.teichmeister@eib.org
Euro, Mediterranean, TEICHMEISTER
Africa)
Carlos
Head of Division
FERREIRA DA +2-49 2 c.ferreira@eib.org
(Euro)
SILVA
Head of Division
(America, Asia, Eila KREIVI +2-49 2 e.kreivi@eib.org
Pacific)
Head of Division
Peter MUNRO +2-49 24 p.munro@eib.org
(Investor Relations)
Director, Treasury Anneli
+2-49 044 a.peshkoff@eib.org
Department PESHKOFF
Head of Division
Francis
(Liquidity +2-49 04 f.zeghers@eib.org
ZEGHERS
Management)
European Investment Bank
Capital Markets Department
00, Boulevard Konrad Adenauer – L-290 Luxembourg
www.eib.org
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
Issuance Overview
As stated in its Statute, Article 22, “The Bank shall borrow on the international capital
markets the funds necessary for the performance of its tasks.”
The EIB is the largest supranational issuer in the capital markets. In 200, the Bank is
expected to raise around EUR 0bn, of which approximately % is anticipated to be
in the three main currencies (EUR, GBP and USD). In the first months of 200 the EIB
issued over EUR 9bn, 4% in EUR, 4% in USD and 9% in GBP.
The Bank had EUR 20bn worth of issues outstanding (as of end 2004), with the shares
of the three main currencies as follows: 44% in EUR, 24% in GBP, 2% in USD.
Optimisation of the funding cost on a sustainable basis and enhancement of secondary
market liquidity and transparency remain the pillars of the Bank’s funding strategy,
enabling it to grant loans on highly attractive terms and thus continue to serve the
policies of the EU. This is achieved through a combination of strategies, in particular:
I
Ü ssuing large liquid benchmark bonds in EUR, GBP and USD: the Bank offers the most
complete curve in EUR among quasi-sovereigns, is the largest non-gilt issuer in GBP,
and is the largest supranational issuer of benchmark bonds in USD.
R
Ü esponsiveness to investor needs: the aim is to be highly sensitive to investor needs
as to currency, product, etc.
Other priorities include:
C
Ü ontributing to the development of the capital markets of the new EU Member
States, and, where circumstances permit, in currencies of countries seeking EU
membership. The Bank is also exploring opportunities for local currency issuance in
other selected countries outside the European Union.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
Issuance Overview
At the beginning of 200 the Bank started to issue debt in new Turkish liras and built up
a yield curve with bonds maturing between 200 and 20.
Issue Size (m) Launch Date Maturity Date Coupon (%) ISIN Number
(TRY m)
0,0 () 24-Mar-2004 -Apr-202 .000 XS09
0 0-Feb-200 29-Aug-200 4.00 XS022204
0 -Jan-200 2-Feb-200 4.00 XS0290
2 0-Mar-200 2-Mar-200 .000 XS02424
20 09-Mar-200 0-Apr-2009 2.00 XS0204
00 2-Jan-200 0-Feb-200 2.000 XS0292
200 9-Oct-200 2-Jan-20 0.000 XS02099
00 -Feb-200 02-Mar-20 0.000 XS02920
00 -Mar-200 0-Apr-20 9.2 XS0200
As of 2 October 200
() Synthetic bond (all payments to be made in USD)
Tables containing details of outstanding EIB benchmark issues in EUR, USD and GBP are
shown on the following pages.
Euro Benchmarks
Issue Size Type
Launch Maturity Coupon (%) ISIN Number
(EUR m) Date Date
,000 Global 9-Sep-02 -Oct-0 .00 XS009
,000 Non-Global -Nov-99 -Apr-0 4. XS0049940
,000 Global -Nov-0 -Jan-0 4.000 XS09040
2,0 Non-Global 2-Jan-9 -Feb-0 .0 XS0092
,000 Global 24-Mar-04 -Oct-0 2.2 XS094444
,00 Global 0-Mar-9 -Apr-0 .000 XS004
,44 Global -Mar-0 -Oct-0 .20 XS0490229
, Non-Global 02-Dec-9 -Apr-09 4.000 XS009040
,000 Non-Global -Oct-00 -Oct-0 .2 XS092242
,000 Global -May-02 -Oct-2 . XS040294
,000 Global 2-Jun-0 -Oct- .2 XS00
,000 Global 0-Jul-04 -Apr-20 4.2 XS094429
,000 Global -May-0 -Oct- 4.000 XS02924
As of 2 October 200
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
Issuance Overview
GBP Benchmarks
Issue Size
Launch Maturity Date Coupon (%) ISIN Number
(GBP m) Date
2,0 2-Jul-99 0-Dec-0 .2 XS0004
,000 22-Nov-0 0-Dec-0 .00 XS09990
,0 0-Jan-9 0-Dec-0 .2 XS00022
,00 -Apr-9 0-Dec-0 .2 XS002
,0 09-Jan-04 0-Dec-0 4.0 XS040
2,0 02-Oct-02 2-Oct-0 4.0 XS0020
,00 0-Jan-9 0-Dec-0 .2 XS004944
2,90 2-Oct-9 0-Dec-09 .0 XS0092040
,0 24-Jan-0 0-Dec-0 4.2 XS020
,00 4-Dec-00 0-Dec- .0 XS022202
,000 -Jan-0 0-Jun-2 4. XS0299
,00 0-Jan-0 4-Jan- 4.0 XS0090249
,0 0-Oct-99 -Apr-4 .2 XS000044
00 0-Jun-0 0-Jul- 4. XS022920
,000 9-Jan-9 2-Aug- . XS00494
00 -Dec-02 -Oct- 4. XS00
, 02-Oct-9 0-Jun-2 . XS009402
,00 0-Apr-00 -Apr-2 .0 XS009
,0 -Mar-9 0-Dec-2 .00 XS0029
, 04-Jul-00 0-Jun-2 .2 XS042294
,000 0-Apr-99 -Apr-9 .00 XS0094990
200 2-Sep-04 2-Oct-4 4.2 XS02024009
As of 2 October 200
In addition a total of GBP ,2m Retail Price Index linked bonds have been issued with maturities between 200 and
20.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
Issuance Overview
USD Benchmarks
Issue Size Type
Launch Maturity Coupon (%) ISIN Number
(USD m) Date Date
2,000 Global -Jan-0 24-Jan-0 .2 XS0202
,000 Global 0-Jan-0 -Mar-0 2. US29CT4
,000 Global Callable 9-Feb-0 4-Apr-0 2.0 US29CU
,000 Global 0-Jun-04 -Aug-0 .000 US29DE
4,000 Global 2-Aug-0 0-Sep-0 4. XS020222
,000 Global 20-Feb-02 0-Mar-0 4.2 US29CP9
,000 Global Callable 0-Apr-04 20-Apr-0 2.00 US29DC9
,000 Global 2-Feb-04 -Jun-0 2. US29DA4
,000 Global 0-Sep-04 -Oct-0 .2 US29DG
,000 Global 04-Jan-0 4-Mar-0 .00 US29DH
,000 Global 0-Apr-0 -Jun-0 .000 US29CW4
,000 Global -May-0 -Aug-0 . US29DM
,000 Global 0-Jan-04 -Mar-09 . US29CZ
,000 Global 24-Feb-0 0-Mar-0 4.000 US29DJ2
,000 Global -Aug-0 -Sep-0 4.2 US29DP2
,000 Global 0-Jun-0 2-Jun- . US29CX2
,00 Global 2-Apr-04 -May-4 4.2 US29DD2
As of 2 October 200
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
Commercial Paper
The EIB issues at the short end of the yield curve through its Global Commercial Paper
(CP) programme. Current outstanding amounts usually vary between EUR bn and EUR
.bn.
The principal terms of the programme are as follows:
Ü Amount of programme: EUR 0bn.
Ü Currencies: euro, pound sterling, Danish kroner, Swedish kronor, Swiss franc,
US dollar, Canadian dollar, Australian dollar, New Zealand dollar, Japanese yen and
such other currencies as may be agreed between the EIB and the relevant dealer.
Ü Maturities and selling restrictions: CP is issued in two forms: US CP and Euro CP.
US CP may be offered to US investors and has a maximum maturity of 20 days. Euro
CP may not be offered to US investors and has a maximum maturity of days (4
days for GBP). In all cases dealers and investors must ensure that they comply with
all relevant laws and regulations.
Ü Prices are issued on a real-time basis for a range of maturities and currencies.
The administration and management of the programme is the responsibility of the
Liquidity Management Division within the Treasury Department.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
Commercial Paper
Euro CP Dealer Group
Name
Barclays Capital
Citibank International
Credit Suisse First Boston (Europe)
Deutsche Bank
European Investment Bank
Goldman Sachs International
Lehman Brothers International (Europe)
UBS Investment Bank
US CP Dealer Group
Name
Citigroup Global Markets Inc.
Credit Suisse First Boston LLC
Deutsche Bank Securities
European Investment Bank
Goldman Sachs & Co.
Lehman Brothers Inc.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
Primary Securities Market
The EIB’s issuing techniques are geared to the nature of the different markets and to
investors’ preferences.
M
Ü ost EIB benchmark issues are syndicated.
Ü Recent EIB benchmark new issues in EUR (EARNs) and new issues in USD follow a pot
structure. This method fosters transparency throughout the book-building process.
The syndicate has a retention as well as access to the pot.
I
Ü nvestor orders made to the syndicate are provided on a name basis to the EIB
only.
M
Ü ost large transactions and all smaller transactions are underwritten.
Ü In GBP, following the sterling market practice, regular smaller fungible taps of
existing issues are launched.
Ü In addition to large benchmark/reference bonds, the Bank offers public and private
placements of smaller size, which seek to meet the requests of specific investor
groups as to maturities, currencies, interest rate formulae, etc. In 2004, structured
issuance accounted for 20% of total funds raised, in 4 transactions.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
European Investment Bank – Banque européenne d’investissement
Secondary Securities Market
Liquidity:
M
Ü ost recent EIB benchmark issues in EUR and USD were launched in global format
with a typical size of EUR bn and USD bn respectively. The EIB’s EUR and USD
bonds trade on leading electronic platforms (e.g. EuroMTS, TradeWeb).
Ü In GBP, the EIB has set up a Sterling Dealer Group. Under normal market conditions,
the dealer banks are expected to make markets, providing prices subject to a
maximum bid-offer spread.
Sterling Dealer Group
Name Name
Barclays Capital JP Morgan Securities Ltd.
Citigroup Morgan Stanley
Deutsche Bank RBC Capital Markets
Dresdner Kleinwort Wassertein The Royal Bank of Scotland
HSBC Bank Plc. UBS Investment Bank
T
Ü he EIB enjoys a strong following from retail investors, notably in Europe and Japan.
The Bank does not sell directly to retail investors, instead selling exclusively via
intermediaries. A significant innovation has been the retail programme in sterling,
established in 200. A Sterling Retail Dealer Group was created, and is committed
to providing two-way prices to retail intermediaries. The group has expanded to
dealers, most of whom have auto-execution services.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Banque européenne d’investissement – European Investment Bank
Secondary Securities Market
I
Ü n the new Member State markets, EIB is also committed to developing secondary
market liquidity. Recent initiatives include the increase of existing bonds towards
benchmark size.
Transparency:
T
Ü he EIB aims to support market transparency by participating in leading electronic
platforms, implementing strong market-making arrangements and communicating
effectively about its capital market activities.
Ü The EIB, in cooperation with Bloomberg and Reuters, has set up pages in these
systems where real-time prices for the Bank’s benchmarks in EUR, GBP and USD are
available (EIB<GO> in Bloomberg and EIBBENCH in Reuters).
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
European Investment Bank – Banque européenne d’investissement
Regulations & Accountability
The EIB’s Statute sets out a framework for the Bank’s activities. It is drawn up as a Protocol
annexed to the Treaty establishing the European Community; it forms an integral part of
the Treaty and has the same legal value.
The Statute requires that the aggregate outstanding loans and guarantees granted by
the Bank should not exceed 20% of its subscribed capital.
An independent Audit Committee verifies that the operations of the Bank have been
conducted in a proper manner. This committee reports directly to the Board of Governors,
which consists of the Finance Ministers of the EU Member States.
20 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
People’s Democratic Republic of Algeria 2
www.finances-algeria.org
" Reporting to the Director Generalfor managing Algeria’s debt. ThereGovernment Borrowings
and Commitments is responsible
of the Treasury, the Directorate for
are two separate sub-
directorates, responsible for managing domestic debt and foreign debt respectively.
Domestic debt is managed by the Sub-Directorate for Domestic Borrowings, which has been in
operation since 1975.
Ü Its main aim is to develop active debt management.
Ü One of the objectives of the Directorate General of the Treasury is to set up a debt management
organisation.
Ü Debt securities are auctioned.
" Algerian Ministry of Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
People’s Democratic Republic of Algeria –
2 Key Contacts
Position Name Telephone E-mail Address
Number
Director for
Government
Mr Oulaceb (+2) 029
Borrowings and
Commitments
Sub-Director for
Ms Megateli (+2) 0290 razikamegateli@hotmail.com
Domestic Borrowings
Research Officer Mr Seddiki (+2) 0290 Toufik.seddiki@caramail.com
Ministry of Finance
Cité Malki
0 Algiers
Algeria
http://www.finances-algeria.org/
22 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– People’s Democratic Republic of Algeria
Currency Regime 2
The Central Bank of Algeria (CBA) is responsible for managing the foreign exchange
policy. The exchange rate for the Algerian dinar against the different currencies is
determined by the CBA in the presence of all commercial banks and according to the
supply and demand manifested by those banks.
The Algerian dinar is not pegged to any currency, but it should be noted that more than
9% of the CBA’s foreign currency funds are denominated in USD.
More details concerning the CBA can be found at www.bank-of-algeria.dz.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
People’s Democratic Republic of Algeria –
2 Issuance Overview
Algeria’s General Government Debt amounted to EUR 22 2 million as of December
2004. This was comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€2 4. €0 2. €22 20.
Government Debt*
Loans €2 4. € 92.22 €4 2.90
Securities €0.00 € .4 € .4
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
€ 02.9 .9%
Securities held by households*
Domestic Government Debt
€0.00 0.00%
Securities held by foreign investors*
*as of December 2004.
There are only domestic issues of Government securities. The Government does not
issue on the international markets.
Algeria does not publish an annual domestic issuance target.
24 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– People’s Democratic Republic of Algeria
Issuance Overview 2
The CBA has final authority in the setting of domestic interest rates. The Directorate
General of the Treasury has responsibility for operational decisions on debt and cash
management.
The table below details all outstanding Government securities issues.
Table 3: Domestic
Currency Issue Size Launch Date Maturity Coupon ISIN Number
(m) Date (%)
DZD 0 2-Jan-200 -Jan-200 2. n/a
DZD 000 0-Jan-2004 0-Jan-200 . n/a
DZD 0 000 9-May-200 2-May-200 .00 n/a
DZD 000 2-Jan-200 -Jan-200 .00 n/a
DZD 000 2-May-200 29-May-200 2.0 n/a
DZD -Sep-2000 2-Sep-200 .00 n/a
DZD 2 00 9-Sep-200 2-Sep-200 .00 n/a
DZD 2 9 2-Jun-2002 04-Jun-200 .00 n/a
DZD 2 020 -Jan-200 -Jan-200 4. n/a
DZD 000 2-Jul-200 -Dec-200 .00 n/a
DZD 000 0-Jan-2004 0-Jan-2009 4.00 n/a
DZD 2 000 9-May-2004 2-May-2009 .0 n/a
DZD 000 20-Apr-200 24-Apr-200 .2 n/a
DZD 000 2-Jan-2004 2-Jan-20 4.0 n/a
DZD 000 2-Mar-200 2-Mar-202 4.2 n/a
DZD 40 0-Oct-200 0-Oct-20 .0 n/a
DZD 94 -Jun-200 9-Jun-20 . n/a
DZD 02 2-Jul-200 -Dec-20 .0 n/a
DZD 000 0-Jan-2004 0-Jan-204 .00 n/a
As of June 200
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
People’s Democratic Republic of Algeria –
2 T- Bond Issuance
Government bonds are auctioned. Issues are not underwritten.
Bond Auctions:
Government bond auctions are organised by the Sub-Directorate for Domestic
Borrowings. There is a standard auction procedure and auctions follow a published
timetable. Details are sent by fax one week before the auction date.
The Government conducts its bond auctions through an established group of banks
(see details below).
Government auctions are not held electronically. They take place at the CBA in the
presence of Treasury representatives and market participants. This procedure places all
participants in a competitive bidding situation. Bids are lodged in sealed envelopes on
the day of the auction by bidding parties who are physically present at the CBA.
Non-competitive bids are also permitted in auctions. There are no restrictions on the
maximum allocation that a bidding party may receive.
Government bonds are not sold directly to investors.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– People’s Democratic Republic of Algeria
T- Bond Issuance 2
T-Bonds Primary Dealer Group
Name Address
BADR 0 Rue Azil Ali, Algiers, Algeria.
BDL Rue Gaci Amar, Staoueli, Algeria.
BEA Rue Boudjemaa Moghni, Algiers.
BNA 2 Rue Hassiba Ben Boualiu, Algiers, Algeria.
CAAR 4 Rue Didouche Mourad, Algiers, Algeria.
CAAT Rue Hamani, Algiers, Algeria.
C.BANK C. Bank Hydra, Algiers, Algeria.
CNEP 42 Rue Khelifa Boukhalfa, Algiers, Algeria.
CNMA 24,Bd Victor Hugo, Algiers, Algeria.
CPA Residence Chaabani Bloc A, Val D’hydra, Algeria.
SAA Bd Che Guevara, Algiers, Algeria.
CNAC Rue Des Frères Adder, Algiers, Algeria.
CIAR 9, Lot Petite Provence Hydra, Algiers, Algeria.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
People’s Democratic Republic of Algeria –
2 T- Bill Issuance
T-bill issues are auctioned and issues are underwritten. These short-term bills are not
issued to cover long-term debt.
T-Bill Auctions:
Government securities have been regularly auctioned at the CBA, in the physical
presence of market participants, since 99.
T-bill auctions are organised by the Sub-Directorate for Domestic Borrowings. There is a
standard auction procedure and auctions follow a published timetable. Details are sent
by fax one week before the auction date.
The Government conducts its T-bill auctions through an established group of banks (see
details below).
Government auctions are not held electronically. Bids are lodged in sealed envelopes
on the day of the auction by bidding parties who are physically present at the CBA’s
offices.
Bids are read out during the sitting and the Treasury sets the final rate or price adopted
for the auction in plenary sitting.
Non-competitive bids are also permitted in auctions.
T-bills are not sold directly to investors.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– People’s Democratic Republic of Algeria
Secondary Securities Market 2
Liquidity:
T
Ü he Sub-Directorate for Domestic Borrowings is responsible for maintaining the
liquidity of the Algerian secondary securities market.
Ü The Directorate for Government Borrowings and Commitments does not intervene
(directly or indirectly) in the secondary securities market.
Ü The Sub-Directorate for Domestic Borrowings does not make outright sales or
purchases of T-bills.
Technology:
T
Ü he Government uses an electronic quotation system located in the dealing room
of the Sub-Directorate for Domestic Borrowings.
Ü There is also a centralised inter-dealer market. Government securities are quoted
twice each week (Sunday and Tuesday) by primary dealers in the secondary market
dealing room located in the Directorate General of the Treasury. This is where
quotations are displayed and information on the Government securities market is
exchanged.
Reforms:
Ü The Directorate General of the Treasury, which deals with the Government
securities market, is responsible for devising and implementing market reforms and
instruments to improve the efficiency of the Algerian secondary securities market.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 29
People’s Democratic Republic of Algeria –
2 Regulation & Accountability
Transparency:
Ü There is a full public order book for Algerian bonds, called the Specifications.
Ü The Government publishes an issuance calendar for T-bond and T-bill auctions.
Ü These auctions are conducted according to a standard procedure.
Regulatory Body:
Ü The Algerian financial markets regulator is the Stock Market Transactions
Organisation and Supervision Commission. More details of this organisation can be
found at www.cosob.org.
Public Accounts:
Q
Ü uarterly and annual Debt Management Accounts are drawn up and distributed by
the Sub-Directorate for Domestic Borrowings.
T
Ü he Treasury Central Accounting Officer is responsible for the Debt Management
Accounts.
Ü An annual Debt Management Report is published.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– People’s Democratic Republic of Algeria
Trade, Conventions, Settlements 2
T
Ü he entities responsible for the clearing and settlement of bonds are the CBA for
Government securities and Algérie Clearing for corporate securities.
T
Ü he normal settlement date for Government bonds is T+.
Ü Algiers is the business day centre for DZD-denominated Government bonds.
Ü Interest on Government bonds is paid annually.
I
Ü nterest is calculated on an actual/ basis.
Ü Yields are calculated according to the annual method.
A
Ü ll DZD-denominated Government bonds are traded over the counter.
Ü There is no repo market for Government bonds.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
People’s Democratic Republic of Algeria –
2 Islamic Finance
The Directorate for Government Borrowings and Commitments does not offer securities
on an Islamic basis.
This report on Algerian National Debt Management was compiled
with information provided by the Algerian Ministry of Finance.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Arab Republic of Egypt
www.mof.gov.eg/debt.aspx
" The Egyptian Debt Management Unit (DMU)been characterised by: as part of the Ministry of
Finance. The organisation’s rationale has since
was established in 2001
1. Budget deficit financing with lowest possible prices by improving:
Ü Lowest cost of financing over time
Ü Transparency, consultation with market participants
Ü Flexibility to respond to uncertainty
Ü Regular pattern of issuance
Ü Predictability of issuance
2. Diversifying debt portfolio by:
Ü Reducing event risk
Ü Diversifying investor base
Ü Improving cash management
Ü Facilitating regular and predictable issuance.
"
Research Department. Central Bank of Egypt.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Arab Republic of Egypt –
Key Contacts
Position Name Telephone E-mail Address
Number
Advisor to the
Minister & Head Mohamed (+20) 002-02-0 –400/00
massaad@mof.gov.eg
of Public Debt ASSAAD (+20) 002-02- –200 to 900
Management Unit
Research Analyst
Nouran (+20) 002-02-0 –400/00
Public Debt nouran@mof.gov.eg
YOUSSEF (+20) 002-02- –200 to 900
Management Unit
Financial Analyst
Yasmine (+20) 002-02-0 –400/00
Public Debt y.abdelrazek@mof.gov.eg
ABDEL RAZEK (+20) 002-02- –200 to 900
Management Unit
Ministry of Finance of Egypt
Ministry of Finance Towers,
Nasrcity
Egypt
www.mof.gov.eg
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
Currency Regime
The Central Bank of Egypt (CBE) is responsible for managing the currency system. There
is no restriction on convertibility but law limits individuals arriving or leaving Egypt to
carrying no more than EGP 000. The Egyptian pound is not pegged to any foreign
currency and there is a floating exchange regime.
More details concerning the CBE can be found at www.cbe.org.eg
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Arab Republic of Egypt –
Issuance Overview
The DMU is currently responsible for managing a total of EUR 2 249 million as of June
2004. This is comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€24,9.9 €,9. €2,9.
Government Debt*
Loans €24,0. €9,92.9 €44,0.9
Securities €49.2** €,44.40 €,.02
*IMF definition
** Sovereign bonds were issued in the amount of USD . billion in July 200 (see table 4). Of this amount USD 92.
million were bought by residents (banking and insurance sector) and USD . by non-residents. Only the amount
bought by non-residents is reported here.
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
€,4.44 0%
Securities held by households*
Domestic Government Debt
– –
Securities held by foreign investors*
*As of 0 June 2004.
The split between international and domestic issuance is determined according to
diversification, interest rates and projects to be financed. Egypt has an annual issuance
target that is set by the Ministry of Finance. For the year ending 0 June 200 the
domestic issuance target was EGP0 billion.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
Issuance Overview
The setting of domestic interest rates is the responsibility of the CBE. The Ministry of
Finance is in charge of debt and cash management decisions.
The tables below detail all outstanding domestic Egyptian bond issues together with
the two Eurobonds. Information about outstanding Government debt securities can
be found at www.cbe.org.eg, www.mof.gov.eg and www.egyptse.com. Domestic
Government debt securities are listed on the Cairo and Alexandria Stock Exchanges
(www.egyptse.com).
Set of Tables 3: Domestic
Treasury Bonds
Currency Issue Size
Launch Maturity Coupon ISIN Code
(m) Date Date (%)
EGP 00 -Aug-99 -Aug-200 0.000 EGBGR000F
EGP 00 -Sep-99 -Sep-200 0.000 EGBGR0004F
EGP 00 -Oct-99 -Oct-200 0.000 EGBGR000F
EGP 00 -Jan-999 -Jan-200 0.000 EGBGR000F4
EGP 2,000 0-Mar-999 0-Mar-2009 9.00 EGBGR000F
EGP 2,000 -Apr-999 -Apr-2009 0.000 EGBGR000F2
EGP ,000 0-May-2000 0-May-200 .000 EGBGR0009F
EGP 4,000 0-Jan-2004 0-Jan-200 .000 EGBGR000F
EGP ,000 2-Oct-2004 2-Oct-20 .00 EGBGR00F
EGP ,000 -Nov-2004 -Nov-204 .2 EGBGR002F
EGP ,000 0-Dec-2004 0-Dec-200 0.9 EGBGR00F
EGP ,000 -Jan-200 -Jan-202 .400 EGBGR004F4
As of March 200
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Arab Republic of Egypt –
Issuance Overview
Government Housing Bonds
Currency Issue Size Launch Maturity Coupon Reuters code
(m) Date Date
EGP 2.9 -Dec-9 -Dec-200 EG20=CA
EGP .9 -Dec-9 -Dec-200 EG20=CA
EGP 4. -Dec-9 -Dec-200 EG20=CA
EGP 4. -Dec-9 -Dec-200 EG20=CA
EGP . -Dec-99 -Dec-2009 EG2909=CA
EGP .2 -Dec-990 -Dec-200 % for the first EG2900=CA
years
EGP . -Dec-99 -Dec-20 EG29=CA
EGP .2 -Dec-992 -Dec-202 EG2922=CA
EGP . -Dec-99 -Dec-20 .% for the EG29=CA
EGP 2.4 -Dec-994 -Dec-204 following EG2944=CA
EGP .2 -Dec-99 -Dec-20 years EG29=CA
EGP 9. -Dec-99 -Dec-20 EG29=CA
EGP 0. -Dec-99 -Dec-20 EG29=CA
9% for the last
EGP 0. -Dec-99 -Dec-20 0 years EG29=CA
EGP 0. -Dec-999 -Dec-209 EG2999=CA
EGP 2. -Dec-2000 -Dec-2020 EG20020=CA
EGP .2 -Dec-200 -Dec-202 EG202=CA
EGP 2.0 -Dec-2002 -Dec-2022 EG2022=CA
EGP 0.9 -Dec-200 -Dec-202 EG202=CA
As of March 200
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
Issuance Overview
Treasury Bills
Currency Nominal (m)
Issue
Maturity Average
Date Date Yield (%)
EGP ,00 2-Nov-2004 -Nov-200 2.0
EGP 00 -Nov-2004 -Nov-200 .
EGP ,000 0-Nov-2004 29-Nov-200 .20
EGP ,00 4-Dec-2004 -Dec-200 0.9
EGP ,00 2-Dec-2004 2-Dec-200 0.
EGP ,000 4-Jan-200 -Jan-200 0.9
EGP 2,000 -Jan-200 0-Jan-200 0.
EGP ,400 2-Jan-200 24-Jan-200 0.4
EGP ,000 -Feb-200 -Jan-200 0.
EGP ,00 -Feb-200 -Feb-200 9.94
EGP ,000 -Feb-200 4-Feb-200 9.
EGP ,000 22-Feb-200 2-Feb-200 9.
EGP 2,000 -Mar-200 2-Feb-200 9.9
EGP ,200 -Mar-200 -Mar-200 0.
EGP ,00 -Mar-200 4-Mar-200 0.
EGP 2,000 29-Mar-200 2-Mar-200 .0
EGP ,000 -Apr-200 4-Apr-200 0.9
EGP ,400 2-May-200 -May-200 0.0
EGP ,000 2-Mar-200 2-May-200 0.
EGP ,000 0-May-200 9-May-200 0.40
EGP 00 24-May-200 2-May-200 0.
EGP ,000 -May-200 0-May-200 0.04
EGP ,000 4-Jun-200 -Jun-200 9.0
EGP ,000 2-Jun-200 2-Jun-200 9.0
EGP ,400 -May-200 -Nov-200 0.
EGP 00 -May-200 -Nov-200 0.0
EGP ,000 24-May-200 22-Nov-200 9.
EGP ,000 -May-200 29-Nov-200 9.9
EGP 00 4-Jun-200 -Dec-200 9.
EGP ,00 2-Jun-200 20-Dec-200 9.20
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Arab Republic of Egypt –
Issuance Overview
Table 4: International
Eurobonds
Currency Issue Size
Launch Maturity Coupon ISIN code
Date Date (%)
USD 00 -Jul-200 -Jul-200 .2 XS02
USD ,000 -Jul-200 -Jul-20 .0 XS02240
As of March 200
40 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
T- Bond Issuance
The Government conducts bond auctions as well as underwritten bond issues.
Underwritten issues are made through a primary dealers’ group (see below). Negotiations
for underwritten issues are conducted by telephone.
Bond Auctions:
Government bond auctions are organised by the Ministry of Finance along with the
CBE. These auctions follow a standardised procedure with a quarterly timetable declared
in advance. Details are published ten days before the auction on the CBE website and
Reuters and in the official newspapers.
The Government conducts its bond auctions through a primary dealer group (see
below). Bids are received by fax and/or by post.
Non-competitive bonds are also permitted in Egyptian auctions. However, the maximum
allocation is limited to 0% per customer.
Government bonds are not sold directly to investors.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Arab Republic of Egypt –
T- Bond Issuance
Egyptian Bonds and T-Bills Primary Dealer Group
Name Address
National Bank of Egypt , Cornish El-Nil St., Cairo, Egypt
Banque Misr , Mohamed Farid St., Cairo, Egypt
Banque du Caire 0, Dr. Mustafa Abu Zahra St Second Area, Nasr City, Egypt
Bank of Alexandria 49, Kasr El-Nil; St., Cairo, Egypt
Commercial International Bank 2/2, Charles De Gaulle St., (Nile Tower Building), Giza, Egypt
(Egypt) S.A.E
Misr International Bank 4, El-Batal Ahmed Abdel Aziz St., Mohandeseen, Giza, Egypt
Arab African International Bank , El Saray El Kubra St., Garden City, Cairo, Egypt
Export Development Bank of Egypt 0, Mohy El Din Aboul Ezz, Mohandeseen, Giza, Egypt
Suez Canal Bank ,9, Abdel Kader Hamza St., Garden City, Cairo, Egypt
Misr Iran Development Bank 2, Charles De Gaulle St., (Nile Tower Building) Giza, Egypt
Egyptian American Bank 4, Hassan Sabry St., Zamalek Cairo, Egypt
Citi Bank N.A. Egypt 4, Ahmed Pasha St., Garden City, Cairo, Egypt
Arab Bank PLC 0, Geziret El Arab St., Mohandeseen, Giza, Egypt
42 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
T- Bill Issuance
The Government conducts short-term bill auctions as well as underwritten short-term
bill issues. Government short-term bills are underwritten by a primary dealers’ group
(see above). Negotiations for underwritten issues are conducted by telephone. T-bills
are not used to cover long-term debt.
T-Bill Auctions:
The Ministry of Finance and the CBE are in charge of the organisation of Egyptian T-bill
auctions.
T-bill auctions follow a standardised procedure with a quarterly timetable declared in
advance. Bids are received by fax and/or by post. Details are published around ten days
before the auction on the CBE website and Reuters and in the official newspapers.
The Government conducts T-bill auctions through a primary dealer group (see details
above). Non-competitive bids are also permitted.
T-bills are not sold directly to investors.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Arab Republic of Egypt –
Secondary Securities Market
Liquidity:
T
Ü he Ministry of Finance and the CBE are jointly responsible for maintaining the
liquidity of the secondary securities market.
Ü The Ministry of Finance does not intervene (either directly or indirectly) in the
secondary market.
Ü The Ministry of Finance does not use outright sales and purchases or buy-back
operations to manage cash flow.
Ü The CBE works as an agent for the Government, so primary auctions for T-bills
and bonds are conducted in securities departments of the CBE on behalf of the
Government. The CBE uses T-bills in its open market operations to manage liquidity
for monetary policy purposes.
Technology:
T
Ü he Government uses Reuters as the electronic centralised quotation system.
Ü At present there is no centralised inter-dealer market, though dealers are required
to provide quotations on demand for a minimum size of EGP 000.
Reforms:
Ü The Ministry of Finance, the CBE and the Capital Market Authority are responsible
for devising and implementing market reforms and instruments to improve the
efficiency of the secondary securities market.
44 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
Regulation & Accountability
Transparency:
Ü There is no full public order book for Egyptian securities.
Ü The Government publishes an issuance calendar for both T-bond and T-bill
auctions.
Ü These auctions are conducted according to a standard procedure.
Regulatory Body:
Ü The CBE and the Capital Market Authority regulate the financial markets.
More details of these organisations can be found at www.cbe.org.eg and
www.cma.gov.eg.
Public Accounts:
A
Ü nnual Egyptian Debt Management Accounts are presented to the Ministry of
Finance for scrutiny but are not published.
T
Ü he Accounting Officer for the Egyptian Debt Management Accounts is Mr Mohamed
Assaad, Head of the DMU.
Ü An annual Debt Management Report is not published.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Arab Republic of Egypt –
Trade, Conventions, Settlements
T
Ü he Misr for Clearing, Settlement and Central Depository (MCSD) is the sole entity
responsible for clearing and settling all trades executed on the Cairo and Alexandria
Stock Exchanges. MCDS is responsible for clearing and settling all securities and
bonds whether corporate or Treasury.
S
Ü ettlement date is T+ for Government securities.
Ü Cairo is the business day centre for EGP-denominated Government bonds.
Ü Coupon interest on Government bonds is calculated on an actual/actual basis.
C
Ü oupon interest on Government bonds is paid semi-annually.
Ü The yield to maturity is calculated according to ISMA rules of calculation.
G
Ü overnment bonds are traded through the bond market, which is part of the listed
securities market (on the exchange). In October 2004, a new primary dealers system
was designed to trade bonds (also on the exchange) that are issued through the
primary dealers system.
Ü At present, the CBE does not use T-Bonds as collateral for repo operations between
the CBE and banks as a monetary policy instrument. The repo market between
banks is not active.
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Arab Republic of Egypt
Islamic Finance
The Egyptian Government does not offer securities on an Islamic basis.
This report on Egyptian National Debt Management was compiled
with information provided by the Central Bank of Egypt.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Israel 4
www.mof.gov.il/mainpage_eng.asp
" The Government Debt Management Unitand external debt. Israel’s Ministry of Financeissuing
responsible for the management of domestic
(DMU) is part of
The DMU is responsible for
and is
tradable bonds on the domestic market and abroad; managing the tradable and non-tradable
domestic debt; initiating and promoting structural changes in the domestic capital market;
studying and monitoring the condition of international markets; and maintaining contacts
with international credit rating companies and working relationships with the Development
Corporation for Israel (“Bonds Organisation”). The DMU was established in January 2002, when
the Foreign Currency Transactions Department in the Accountant General Division was merged
with part of the Capital Market Department in the Capital Market, Insurance and Savings Division.
Until the DMU was established, the Foreign Currency Transactions Department was responsible
for managing external debt, while the Capital Market Department managed domestic debt. The
decision to combine both departments into a single unit within the Accountant General Division
was aimed at improving the efficiency of Government debt management. The establishment of
the DMU within the Accountant General Division, which is responsible for the execution of the
State budget, uniting all the professional functions and the extensive knowledge accumulated
under one roof, has led to better coordination between all the relevant elements, and to higher
quality management of Government debt. The establishment of the DMU was based on successful
experience in various countries, as well as the recommendations of the International Monetary
Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD). The DMU
is composed of three departments, according to its main areas of activity: the Domestic Debt
Management Department, the External Debt Management and Foreign Currency Transactions
Department, and the Risk Management Department.
"
Ministry of Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 49
Israel –
4 Key Contacts
Position Name Telephone E-mail Address
Number
Head of Government
Adi Rivlin (+92) 2 4 adir@mof.gov.il
Debt Management
Director of Foreign
Currency Transactions Eran Heimer (+92) 2 heimer@mof.gov.il
Department
Head of Risk
Management Adi Shachaf (+92) 2 adis@mof.gov.il
Department
Director of Domestic
Yosi Steinberg (+92) 2 yossis@mof.gov.il
Debt Department
Ministry of Finance
International Department
P.O. Box 99 Jerusalem
Israel
www.mof.gov.il
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
Currency Regime 4
The Central Bank of Israel (CBI) is responsible for managing the currency system and the
foreign exchange policy.
In December 99, the CBI introduced the “diagonal band” or “crawling peg” system to
reduce business sector uncertainty and speculative cycles that had caused sharp capital
movements under prior exchange rate systems. Under this system, the slope of the band
is adjusted on a daily basis on a gradual, constant and predetermined path. On 9 June
200, the exchange rate band was abolished. The exchange regime has since been a
perfectly floating exchange rate. As of January 200, all activities and transactions in
foreign currency between resident individuals and businesses and non-residents are
permitted.
More details concerning the CBI can be found at www.boi.gov.il/firsteng.htm
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 Issuance Overview
At the end of 2004, total Government debt reached EUR 9 2 million. Israeli
Government debt is characterised by a large share of securities issues rather than loans
and by the high weight of the domestic debt component.
Table 1
International (m) Domestic (m) Total (m)
Central
€2,.4 €,4. €9,2.
Government Debt*
Loans €2,092. €,99.4 €4,0.
Securities €2,0.09 €,.2 €,40.4
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
N/A N/A
Securities held by households*
Domestic Government Debt
€4.0 0.2%
Securities held by foreign investors*
*as of December 2004.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
Issuance Overview 4
For the past ten years the Ministry of Finance has kept the external debt ratio to
approximately 2% of total debt. There is also an annual issuance target that is set by
the Ministry of Finance. In the current year, the international issuance target is USD
2. billion while the domestic issuance objective has been set at ILS 42. million.
The DMU does not borrow for on-lending.
The Governor of the CBI has the final authority in the setting of interest rates on its
monetary instruments, which influence market rates.
The set of tables 4 details all outstanding international bond issues by the Government
of Israel. More details on outstanding debt figures can be monitored at
http://www.mof.gov.il/debt/gen/mainpage.asp. Domestic Government debt securities
are also listed on the Tel Aviv Stock Exchange. (www.tase.co.il/buildpage.cgi).
Set of Tables 3: Domestic
Tradable domestic Government securities are: Non-linked Loans/Floating Rate
Currency Issue Launch Maturity Coupon Serial Serial Name
Size (m) Date Date (%) Number
ILS ,.4 09-Apr-99 0-Apr-200 4. 92204 Gilon
ILS ,000.0 29-Apr-999 -Mar-2009 4. 920 Gilon Chadash
ILS 2,9. 02-Dec-999 0-Nov-2009 4.4 9202 Gilon Chadash
ILS ,44. 2-May-2000 0-Apr-200 4. 920 Gilon Chadash
ILS 0,9.2 0-Mar-200 2-Feb-20 4.4 92044 Gilon Chadash
ILS ,00.0 0-Jan-2002 0-Dec-20 4. 920 Gilon Chadash
ILS ,9.4 0-Jan-200 -Dec-200 4. 92 Gilon Chadash
ILS 9,2. 0-Jan-2004 -Dec-200 4. 92 Gilon Chadash
As of 2 July 200
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 Issuance Overview
Non-linked Loans/Fixed Rate
Currency Issue Launch Maturity Coupon Serial Serial
Size (m) Date Date (%) Number Name
ILS ,942.0 -Jun-2000 -May-200 9.0 92 Shahar
ILS ,4. 0-Apr-200 -Mar-200 .0 92 Shahar
ILS ,4.4 0-Jul-2000 29-Jun-200 9.0 9200 Shahar
ILS 2,024. 2-Mar-2002 2-Feb-2009 .0 929 Shahar
ILS ,4. -May-200 29-Apr-20 .0 920 Shahar
ILS 9,.9 2-Jun-2002 -May-202 0.0 92 Shahar
ILS 2,0.9 2-Apr-2004 -Mar-204 . 922 Shahar
As of 2 July 200
CPI Index-linked/Fixed Rate
Currency Issue Launch Maturity Coupon Serial Serial
Size (m) Date Date (%) Number Name
ILS 4,0. 20-Jan-99 -Jan-200 CPI+4.00 90 Galil
ILS 9. 02-Apr-99 0-Apr-200 CPI+4.00 9409 Galil
ILS ,2.0 04-Jun-99 0-Jun-200 CPI+4.00 9402 Galil
ILS 2,99. 0-Jan-99 -Jan-200 CPI+4.00 940 Galil
ILS . 02-Aug-99 -Aug-200 CPI+4.00 920 Galil
ILS 9. 0-Sep-99 0-Sep-200 CPI+4.00 920 Galil
ILS ,4. 04-Aug-992 -Aug-200 CPI+4.00 920 Galil
ILS ,00. 0-Nov-992 0-Nov-200 CPI+4.00 9204 Galil
ILS .9 0-Apr-990 29-Apr-200 CPI+4. 942 Galil
ILS 402. 04-May-990 -May-200 CPI+4. 94 Galil
ILS 99. 0-Sep-990 0-Sep-200 CPI+4. 9444 Galil
ILS 2.4 0-Jan-99 -Jan-200 CPI+4.00 94 Galil
ILS 2. 02-Mar-99 -Mar-200 CPI+4.00 942 Galil
ILS 04. -Jul-99 -Jul-200 CPI+4.00 94 Galil
ILS 9.0 0-Oct-99 -Oct-200 CPI+4.00 940 Galil
ILS .0 0-Jan-994 -Jan-2009 CPI+4.00 9499 Galil
ILS ,4.4 0-Jun-994 0-Jun-2009 CPI+4.00 9420 Galil
ILS ,04.4 09-Sep-994 0-Sep-2009 CPI+4.00 942 Galil
ILS 9.9 0-Nov-994 0-Nov-2009 CPI+4.00 94224 Galil
As of 2 July 200
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
Issuance Overview 4
CPI Index-linked/Fixed Rate
Currency Issue Launch Maturity Coupon Serial Serial
Size (m) Date Date (%) Number Name
ILS 0. 4-Feb-99 2-Feb-200 CPI+4.00 942 Galil
ILS 9. 0-Jun-99 0-Jun-200 CPI+4.00 94242 Galil
ILS ,0.4 2-Jul-99 -Jul-200 CPI+4.00 942 Galil
ILS 2,04.9 0-Oct-99 -Oct-200 CPI+4.00 9420 Galil
ILS 4,9.4 0-Jun-99 0-Jun-202 CPI+4.00 9429 Galil
ILS ,4. -Nov-99 -Oct-200 CPI+4.00 94 Galil
ILS 4,9. 24-Nov-99 -Oct-20 CPI+.00 940 Galil
ILS ,2.0 0-Nov-999 -Oct-204 CPI+.00 944 Galil
ILS ,0. 2-May-2000 0-Apr-20 CPI+.00 942 Galil
ILS 0,4. 04-Sep-200 -Aug-20 CPI+4.00 940 Galil
ILS ,9.2 0-Sep-2002 -Aug-202 CPI+.00 942 Galil
ILS 9,.2 0-Oct-2002 0-Sep-200 CPI+.00 90 Galil
ILS 9.4 22-Jan-9 -Jan-200 CPI+4. 90 Galil
ILS 9.4 -Feb-9 2-Feb-200 CPI+4. 902 Galil
ILS 44.2 22-Mar-9 -Mar-200 CPI+4. 90 Galil
ILS 2. -Apr-9 29-Apr-200 CPI+4. 9044 Galil
ILS 2,4. 0-May-9 -May-200 CPI+4. 90 Galil
ILS 0. 0-Jun-9 0-Jun-200 CPI+4. 902 Galil
ILS 2,0.4 -Oct-9 -Oct-200 CPI+4. 90 Galil
ILS 9. 20-Jan-99 -Jan-200 CPI+4. 9 Galil
ILS 44. 4-Apr-99 0-Apr-200 CPI+4. 924 Galil
ILS 2. 09-Jan-990 -Jan-200 CPI+4. 9 Galil
ILS 2. -Feb-990 2-Feb-200 CPI+4. 942 Galil
ILS 9.0 -Mar-990 -Mar-200 CPI+4. 9 Galil
ILS ,094.0 0-Jun-99 0-Jun-200 CPI+4. 90 Galil
ILS . -Aug-99 -Aug-200 CPI+4. 902 Galil
ILS .0 0-Sep-99 0-Sep-200 CPI+4. 904 Galil
ILS 4.9 0-Jun-990 0-Jun-200 CPI+4. 904 Galil
ILS 2.9 0-Jul-990 -Jul-200 CPI+4. 902 Galil
ILS 2. 0-Aug-990 -Aug-200 CPI+4. 90 Galil
ILS . 0-Nov-990 0-Nov-200 CPI+2.0 900 Galil
ILS ,0. 04-Jul-99 -Jul-2009 CPI+4. 9904 Galil
ILS ,202. 2-Aug-200 0-Jul-202 CPI+4.00 9902 Galil
ILS ,29.2 2-Aug-2004 -Jul-2024 CPI+4.00 9904 Galil
As of 2 July 200
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 Issuance Overview
Dollar-linked/Floating Rate
Currency Issue Launch Maturity Coupon Serial Serial
Size (m) Date Date (%) Number Name
ILS 20. 24-Jan-2000 24-Jan-200 .9 9 Gilboa
As of 2 July 200 - Source: Bank of Israel.
Set of Tables 4: International
Tradable international Government securities are:
Currency Issue Size
Launch Maturity Date Coupon ISIN code
(m) Date (%)
USD 20 2-Dec-99 -Dec-200 . US4LU
JPY 20,000 04-Aug-99 0-Aug-200 .000 TT4
USD 20 -Dec-99 -Dec-202 .20 US4ZR9
GBP 00 2-Oct-999 2-Oct-204 . XS0000
EUR 400 -Jun-999 -Jun-200 4.0 XS00990
USD 00 -Mar-2000 -Mar-200 .0 US4S9
JPY 20,000 0-Dec-200 0-Dec-20 .00 JP00AT
EUR 400 -Feb-2002 -Feb-2009 . XS0492
USD -Dec-2002 -Dec-202 .40 N/A
USD 0 -Jun-200 -Jun-20 4.2 US4EFD94
USD 00 02-Mar-2004 0-Mar-204 .2 US4EHJ4
As of 2 July 200
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
Issuance Overview 4
US Loan Guarantee Program
Currency Issue Size
Launch Maturity Coupon ISIN code
(m) Date Date (%)
USD 90.2(2) 99 200 - 202 ZC()
USD 9.(2) 99 2004 - 202 ZC()
USD 22. 994 200 - 200 .00 US49DU42
USD .0 994 202 .00 US49DV2
USD 9.(2) 994 202 - 2024 ZC()
USD 22.0(2) 994 200 - 2024 ZC()
USD 0.(2) 994 200 - 2024 ZC()
USD 22.(2) 99 200 - 202 ZC()
USD 0.0 99 200 .9 US49LF2
USD 4.4(2) 99 200 - 202 ZC()
USD 4.9(2) 99 200 - 202 ZC()
USD .2(2) 99 2002 - 202 ZC()
USD 2.(2) 99 2002 - 202 ZC()
USD 99.(2) 99 2002 - 202 ZC()
USD ,0.0 -Sep-200 -Sep-202 . US4EFF4
USD 40.0 -Sep-200 -Sep-20 . US4EFG2
USD 0.0 02-Dec-200 04-Dec-202 . US4EGV
USD ,000.0 22-Apr-2004 2-Apr-2024 . US4EGV
USD 0.0 2-Oct-2004 0-Nov-2024 .2 US4EKL
As of 2 July 200
() Zero Coupon.
(2) Proceeds realised, not face amount.
Source: Ministry of Finance.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 T- Bond Issuance
The Government issues bonds via the CBI in a scaled (multi- price) auction procedure.
Bond Auctions:
Government bond auctions are organised by the CBI on behalf of the Ministry of
Finance.
On the last Wednesday of each month, the MoF publishes its bond issue schedule for the
next month. Two days before the auction, details such as the amount offered, interest
rate and maturity are published on the CBI’s website and distributed in a circular to all
those entitled to bid at the auction directly. Essential data relating to each auction are
also published via the computerised communications systems such as Reuters, Shva
(Automatic Bank Services) and Kav-Manhe. Based on the secondary market prices, a
minimum price is set before the beginning of the auction, but not disclosed. Bids at
prices lower than the minimum are not accepted.
On the auction date, bidders place their offers by 2:0 p.m. via the Shva computerised
network, which is used to transfer information from auction participants to the Bank
of Israel. A bid states the price offered and the amount requested. Bids are submitted
in basis points. A demand curve is constructed from the bids received. The closing
price is the point where this curve meets the curve that describes the quantity offered.
All bidders who offer a higher price receive the entire amount requested and each
bidder pays the price offered. Bids at the closing price receive a pro-rata amount (i.e.
the remaining amount divided by the demand). If there is an excess demand at the
closing price and if the closing price is lower than the auction’s average price (based on
the declared quantity) by not more than ILS 0.2, an additional bonds allocation of no
more than 20 percent of the declared quantity is done automatically. The Ministry of
Finance reserves the right to change the automatic additional allocation parameters (i.e.
20 percent of the declared quantity and ILS 0.2 gap between average and closing prices)
and will inform the public in advance if it decides to do so.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
T- Bond Issuance 4
Announcement of auction results: About ten minutes after bidding closes, the auction
results are announced over the Shva system. Every participant in the auction is given a
general statement including the closing price, the average price and the quantity actually
sold. All participants also receive details of their purchases - the quantities purchased
and their prices. One hour later, the general results of the auction are published over
computerised communication systems such as Reuters, Kav-Manhe and Bezeq-Zahav.
On the following day, the results are published in two daily newspapers.
Participants in the primary market: All Tel Aviv Stock Exchange members (banks and
brokers) are entitled to bid at bond auctions. Mutual funds, insurance companies,
provident funds and pension funds have also been authorised (since 994) to bid
directly at auctions. They may submit bids of at least NIS 00,000 per order. Stock
Exchange members currently participate both for their own accounts (‘nostro’) and for
their clients – both retail and institutional.
It should be noted that Israel will move to a primary dealers system in the first quarter
of 200.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Israel –
4 T- Bill Issuance
Treasury bills (makam) are Government securities issued by the CBI. They constitute one
of the instruments whereby the Bank manages the interest-rate policy in order to attain
the long-term inflation targets set by the Government. Treasury bills may be issued for
periods of up to a year, are not indexed and bear no interest. They may consequently be
sold and traded at a price below their face value (disagio). Treasury bills are redeemed
at their face value, and profit on T-bills has been subject to tax since January 2004. T-bills
are not used for Government finance.
T-Bill Auctions:
Treasury bills are offered to the public and sold at a multi-price auction (also called
“discriminatory” auction). Bids in terms of the annual yield to maturity are submitted
via the Shva communications network. The amount to be offered at the auctions is
published in the press and communications networks several days prior to the date of
the auction. Members of the Tel-Aviv Stock Exchange (TASE), which includes most of the
banking corporations and brokers, may participate. A limited amount (currently up to
0 million shekels per auction) of the Treasury bills offered may be purchased without
any limitation on yield; the entire amount requested will be supplied at the average yield.
Private customers may participate in the auctions provided they purchase Treasury bills
to the value of at least ILS million. Auctions are held every week, at 2.0 on Tuesday.
Treasury bill series offered at auction are listed for trading on the TASE on the first trading
day after the day of the auction. Treasury bills are traded daily on the TASE and, generally,
there are 2 outstanding series traded at any point in time, with monthly maturities
ranging from the end of the current month to the end of the th subsequent month.
Each month a new 2-month series is issued at the bi-weekly auctions and auctions are
also held for the existing series with -month maturity.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
T- Bill Issuance 4
Treasury bills are offered and sold to the public by the CBI in two ways:
A
Ü multi-price auction (also called “discriminatory” auction), in which each successful
bidder pays the price he has offered; participants compete for the yield on Treasury
bills, which is delivered to them at the end of the auction. A limited amount of
Treasury bills, as published in the auction announcement, can also be bought
through non-competitive bids; the amounts requested will be supplied on a pro
rata basis at the average yield at the auction.
A
Ü multi-price auction (also called “discriminatory” auction), in which the participants
compete for the yield on the Treasury bills, which is delivered to them three months
after the auction. This transaction is known as Treasury bills futures.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 Secondary Securities Market
Liquidity:
T
Ü he Ministry of Finance is responsible for maintaining the liquidity of the secondary
market.
Ü The DMU does not intervene in the secondary securities market.
Ü The DMU does not use outright sales and purchases of T-bills or buy back securities
to manage cash flows.
Technology:
N
Ü o centralised Government securities quotation system exists in Israel.
Ü At present, there is no centralised inter-dealer market.
Reforms:
Ü The Ministry of Finance is responsible for devising and implementing market
reforms and instruments to improve the efficiency of the market. One of the biggest
challenges is to introduce to the Israeli market the primary dealers system that is
well accepted in many other countries across the world.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Israel
Regulation & Accountability 4
Transparency:
Ü The Government via the Bank of Israel publishes an issuance calendar for both
T-bond and T-bill auctions.
Ü These auctions are conducted according to a standard format.
Ü A full public order book of Government securities holdings does not exist in Israel.
Regulatory Body:
Ü The Israeli Securities Authority and the Capital Markets, Insurance and
Savings Division in the Ministry of Finance are jointly responsible for financial
markets regulation. More details about these organisations can be found
at: www.isa.gov.il/english/default.asp?active=home and
http://www.mof.gov.il/cap_e.htm.
Public Accounts:
I
Ü srael’s annual Debt Management Accounts are published and can be found at:
www.mof.gov.il/debt/ext/pub.asp.
Ü These accounts are presented to the State Comptroller and the Ombudsman for
scrutiny.
Ü The Debt Accounting Officer is the Chief Accountant of the Accountant General’s
Office at the Ministry of Finance.
Ü A Debt Management Report is also published. It is available on the website of the
Ministry of Finance: www.mof.gov.il/debt/dom/dom.asp.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Israel –
4 Trade, Conventions, Settlements
Ü TACH (Tel Aviv Clearing House) is responsible for the clearing and settlement of
Government bonds.
S
Ü ettlement date is T+ for ILS-denominated Government securities.
Ü Jerusalem is the business day centre for ILS-denominated Government bonds.
Ü Coupon interest on domestic Government bonds is calculated on an actual/
basis.
Ü Coupon interest on ILS-denominated Government bonds is paid annually (except
for Gilon bonds, which pay coupon every quarter).
Ü The IRR yield method is used for ILS-denominated Government bonds.
9
Ü % of domestic Government bonds are traded on the Tel Aviv Stock Exchange and
4% are traded over the counter, based on data as of January-July 200.
Ü There is no repo market yet. It is planned to start one in 200.
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
The Hashemite Kingdom of Jordan
www.cbj.gov.jo
" The main goal of the Open Market Operations and Public Debt Department (OMOPDD) of the Central
Bank of Jordan (CBJ) is the management and implementation of monetary policy and the management
of Internal Public Debt issues, both of which contribute to maintaining monetary stability. The OMOPDD
performs the following tasks:
F
Ü irst: Conducting daily operations of monetary policy related to banks’ excess reserves through direct
dealings with licensed banks. This requires that the OMOPDD follows up and monitors all monetary
and credit developments on a daily basis. Furthermore, the OMOPDD monitors the impact of various
decisions related to monetary policy on monetary targets. In order to achieve these targets, both the
direction and volume of market intervention are to be determined in advance, using one or more of
the following instruments:
≠ Excess Reserves absorbing instruments such as:
1. Regular biweekly issues of CDs.
2. Overnight Deposit Window (used by banks overnight).
3. Outright sale of Government securities (not used at present).
≠ Liquidity-injecting instruments such as:
1. Repurchase Agreements (Repos) for one week (this type is used upon the request of the
licensed bank, but the CBJ announces the Repo Rate daily).
2. Overnight Repo (this type is used only when the CBJ announces its availability).
3. Outright purchase of Government securities (not used at present).
S
Ü econd: Providing recommendations related to the structure of interest rates, especially those used
in applying monetary policy instruments, namely the Repo Rate, the Re-Discount Rate and the
Overnight Window Rate. Thus, the OMOPDD also has to follow up on the impact of changes in the
market interest rate structure, especially the overnight interbank lending rate and the interest rate
on CDs issued by CBJ to licensed banks.
T
Ü hird: Extending credit to the Government and to licensed banks, financial institutions and
specialised credit institutions, subject to the rules and regulations and CBJ decisions applicable in
this regard. The Department also provides the rediscount facility to licensed banks for rediscounting
their bonds, promissory notes and other credit documents acceptable by the CBJ according to its
Bylaws, Rules, Regulations and applicable Decisions. Finally, it provides credits within the Export
Promotion Programme.
F
Ü ourth: Management of Government securities and Government guaranteed securities according
to the Public Debt Law, bylaws, rules and decisions applicable in this regard. In addition, the
Department manages the regular interest payments and the payment of the face value at maturity.
The Department also performs the task of the “bookkeeping” of ownership of these Government
securities and all the changes that take place in this ownership.
"
Central Bank of Jordan
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
The Hashemite Kingdom of Jordan –
Key Contacts
Position Name Telephone E-mail Address
Number
Executive Manager Bassam Toukan (+92) 4 00 openmark@cbj.gov.jo
Assistant Executive Dr Marwan al
(+92) 4 00 openmark@cbj.gov.jo
Manager Zoubi
Head of Open
Markets Operation Sahar Qaqeesh (+92) 4 00 openmark@cbj.gov.jo
Division
Head of Primary
Ahmed Rajoub (+92) 4 00 openmark@cbj.gov.jo
Issues Division
Head of Analysis
Mohammed al
and Development (+92) 4 00 rawashdh@cbj.gov.jo
Rawashedeh
Division
Head of Back Office
Ahmed Dakak (+92) 4 00 openmark@cbj.gov.jo
Division
Head of Advances
Jasser al Nosur (+92) 4 00 openmark@cbj.gov.jo
Division
Central Bank of Jordan
P.O. Box () Amman-
Jordan
www.cbj.gov.jo
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– The Hashemite Kingdom of Jordan
Currency Regime
The CBJ is responsible for managing the currency system. The Jordanian dinar is fully
convertible and is pegged to the US dollar.
More details concerning the CBJ can be found at www.cbj.gov.jo
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
The Hashemite Kingdom of Jordan –
Issuance Overview
The OMOPDD is currently responsible for managing a total of EUR 0 million (as of
March 200). This is comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€,9.9 €2,2.20 €,0.9
Government Debt*
Loans €,. €44.94 €,22.0
Securities €.02 €,.2 €,.29
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
€. 0.02%
Securities held by households*
Domestic Government Debt
€0.00 0.00%
Securities held by foreign investors*
*As of March 200.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– The Hashemite Kingdom of Jordan
Issuance Overview
The split between international and domestic issuance is determined according to
Public Debt Law.
€.2 million of Jordanian securities consist of international issues with special
characteristics. They are to be repaid to the Housing Guaranty Program under a USAID
guaranteed scheme.
Jordan has annual issuance target, which is set by the Ministry of Finance.
The setting of domestic interest rates is the responsibility of the CBJ. The Ministry of
Finance is in charge of debt and cash management decisions.
The table below details all outstanding domestic Jordanian bond issues. Information
about the outstanding Government debt securities can be found on the following
websites: www.mof.gov.jo for external public debt and www.cbj.gov.jo for domestic
debt. Domestic Government debt securities are also listed on the Amman Stock
Exchange (www.exchange.jo).
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
The Hashemite Kingdom of Jordan –
Issuance Overview
Set of Tables 3: Domestic
Treasury Bonds
Currency Issue Size Launch Maturity Coupon ISIN Number1
(m) Date Date (%)
JOD 00 29-Dec-02 29-Dec-0 .2 JO044000
JOD 00 20-Mar-0 20-Mar-0 4. JO04400
JOD 200 0-Jun-0 0-Jun-0 4.2 JO044002
JOD 00 0-Sep-0 0-Sep-0 4.0 JO044009
JOD 00 0-Nov-0 0-Nov-0 4.49 JO044004
JOD 00 2-Dec-0 2-Dec-0 4. JO044004
JOD 00 0-Jun-04 0-Jun-09 .4 JO044002
JOD 00 -Aug-04 -Aug- .0 JO044000
JOD 00 -May-0 -May-0 .22 JO04400
JOD 20 0-Jul-9 0-Jul-0 . JO04002
JOD 9 2-Aug-9 2-Aug-0 9.2 JO04000
As of June 200
Source: Central Bank of Jordan website.
http://www.cbj.gov.jo/pages.php?menu_id=2&local_type=0&local_id=0&local_details=0&local_details=0&localsite_
branchname=CBJ
: Source: Jordanian Securities Depository Center website.
http://www.sdc.com.jo/english/isins-public-issuers.shtm
Treasury Bills
Currency Issue Size
Issue Maturity Discount Issue Number
(m) Date Date price (%)
JOD 00 29-Dec-2004 29-Jun-200 9.444 /2004
JOD 00 0-Dec-2004 0-Jun-200 9.22 9/2004
JOD 00 2-Feb-200 2-Aug-200 9.24 /200
JOD 00 29-May-200 29-Nov-200 9.949 2/200
JOD 00 -May-200 0-Nov-200 9.0 /200
JOD 200 0-Jun-200 29-Dec-200 9.20
4/200
As of June 200
Source: Central Bank of Jordan website
http://www.cbj.gov.jo/pages.php?menu_id=2&local_type=0&local_id=0&local_details=0&local_details=0&localsite_
branchname=CBJ
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– The Hashemite Kingdom of Jordan
T- Bond Issuance
The Government conducts bond auctions; these issues are not underwritten.
Bond Auctions:
Government bond auctions follow a standardised procedure but there is no
pre-published auction timetable. These auctions are organised by the OMOPDD.
The Government does not conduct its bond auctions through a primary dealer group.
Government bond auctions are not conducted electronically – bids are received by fax.
The main features are published one business day in advance on the CBJ’s website as
well as in the memorandum to banks.
Non-competitive bids are permitted in Jordanian auctions. However, the maximum
allocation is limited to 0% of the face amount of the issue.
Government bonds are also sold directly to investors by post and/or telephone.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
The Hashemite Kingdom of Jordan –
T- Bill Issuance
The Government currently issues short-term bills via standardised auctions; these issues
are not underwritten. They are not used to cover long-term debt.
T-Bill Auctions:
T-bill auctions do not follow a published timetable though some details are published
on the CBJ’s website and in a memorandum to banks one business day in advance.
Auctions are not conducted through a primary dealer group.
Government short-term bill auctions are not conducted electronically; bids are received
by fax.
T-bills are sold directly to investors by post and/or telephone.
Non-competitive bids are not permitted.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– The Hashemite Kingdom of Jordan
Secondary Securities Market
Liquidity:
T
Ü he OMOPDD has primary responsibility for maintaining the liquidity of the
Jordanian secondary securities market.
Ü The Ministry of Finance does not intervene in the secondary securities market.
Ü Outright sales and purchases as well as buy back operations are used to manage
cash flow.
Technology:
T
Ü here is no centralised Government quotation system or centralised inter-dealer
market.
Ü Dealers are not required to publish daily quotations, though they are required to
provide quotations on demand to investors.
Reforms:
Ü The Jordan Securities Commission and the CBJ are jointly responsible for devising
and implementing market reforms and instruments to improve the efficiency of the
secondary securities market.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
The Hashemite Kingdom of Jordan –
Regulation & Accountability
Transparency:
Ü There is no full public order book for Jordanian securities.
Ü The Government does not publish an issuance calendar for either T-bond or T-bill
auctions.
Ü These auctions are conducted according to a standard format.
Regulatory Body:
Ü The Jordan Securities Commission regulates the financial markets. More details of
this organisation can be found at www.jsc.gov.jo.
Public Accounts:
A
Ü nnual Debt Management Accounts are published and can be found at
www.mof.gov.jo
Ü The Accounting Officer for the Debt Management Account is the Treasury
Manager.
Ü An Annual Debt Management Report is published and can be monitored at
www.mof.gov.jo
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– The Hashemite Kingdom of Jordan
Trade, Conventions, Settlements
Ü The CBJ acts as a clearing house for Government bonds.
S
Ü ettlement date is T+2 for Jordanian Government securities.
Ü Amman is the business day centre for JOD-denominated Government bonds.
Ü Coupon interest on Government bonds is calculated on a 0/ basis.
Ü Coupon interest on Government bonds is paid semi-annually.
Ü The yield method is yield to maturity.
Ü % of Government bonds are traded on the OTC market and the rest are traded on
the stock exchange.
Ü There is a repo market for Government bonds but it is currently inactive. The
main participants are: CBJ, commercial banks and big companies. The CBJ uses
the repo market to manage its monetary policy; other participants use it for cash
management.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
The Hashemite Kingdom of Jordan –
Islamic Finance
The CBJ does not offer securities on an Islamic basis.
This report on Jordanian National Debt Management was compiled
with information provided by the Central Bank of Jordan.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Republic of Lebanon
www.finance.gov.lb
" The department responsible for debtestablished the is thewithin the Directorate of Treasury and
Ministry of Finance. Law 10,092 (1997)
management
PDD
Public Debt Department (PDD) at the
Public Debt.
Its major functions include:
Ü anaging and controlling domestic loan accounts (treasury bills) in coordination with the
M
Banque du Liban (BdL).
Ü anaging and controlling foreign loan accounts contracted or guaranteed with the
M
Government, in coordination with all beneficiary public administrations and the BdL.
Ü anaging Government subscriptions in capital shares in regional and international funds or
M
organisations.
Ü reparing yearly schedules for payment for foreign loan dues and preparing all necessary
P
procedures and documents related to the payment orders and instructing the BdL to execute
all due payments.
Ü reparing detailed statistical statements regarding loans and bonds and analytical
P
statements.
Ü dvising on studying foreign loan agreements and the Government share in regional and
A
international funds or organisations.
Ü anaging and controlling domestic borrowing accounts from the BdL.
M
Ü anaging and controlling lending accounts from the Treasury to public administrations or
M
institutions.
At the end of 2004, a draft law provided for the creation of an independent Public Debt Office
(PDO) at the Directorate General of the Ministry of Finance with three divisions, namely the Capital
Markets division, the Strategic and Risk Management division, and the Operations division.
The law also provides for the creation of a “Higher Council for Debt Management” under
the direction of the Minister of Finance and the following members: (1) BdL Governor or his
representative, (2) Director General of the Ministry of Finance, (3) Director of PDD, (4) Director of the
Treasury Department, (5) Director of the Budget Department. This Council will specify the choices
available for debt management and present suggestions to the Council of Ministers relating to
public debt policies.
"
Ministry of Finance
Summary of draft law submitted
to Parliament in January 2005
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Republic of Lebanon –
Key Contacts
Position Name Telephone E-mail Address
Number
Head of the
Directorate of (+9) 900
Ms Moni
Treasury and Public to monyk@finance.gov.lb
Khoury
Debt (+9) 900
Ministry of Finance
Head of PDD Ministry Ms Amal
(+9) 429 amals@finance.gov.lb
of Finance Shebaro
Senior Economist
UNDP Project –
Capacity
Mr Raffi
Development for (+9) 90 raffik@finance.gov.lb
Kendirjian
Fiscal Reform and
Management
Ministry of Finance
Ministry of Finance
Riad El Solh Square
MoF Building
Republic of Lebanon
www.finance.gov.lb
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Currency Regime
The organisation responsible for managing the currency system and the foreign
exchange policy is the BdL.
Foreign exchange rate stability is a primary policy objective for the Government as well
as for the BdL. Since October 992, the exchange rate policy has been to anchor the
Lebanese pound’s nominal exchange rate to the US dollar.
The Lebanese pound is convertible and its exchange rate is generally determined on the
basis of demand and supply conditions in the exchange market. BdL intervenes when
necessary to maintain orderly conditions in the foreign exchange market. There are no
taxes or subsidies on purchases or sales of foreign exchange.
More details concerning the BdL can be found at www.bdl.gov.lb.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Republic of Lebanon –
Issuance Overview
The PDD is currently responsible for managing a total of EUR 2 million (as of end
December 2004). This is comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€,4.9 €2,.00 €2,.9
Government Debt*
Loans €,94. €24. €2,9.0
Securities €,. €2,.2 €24,44.9
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
.2 4.9%
Securities held by households*
Domestic Government Debt
Not available Not available
Securities held by foreign investors*
*As of end-December 2004.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Issuance Overview
International issuance through Eurobond transactions is carried out as per the Treasury’s
foreign currency financing needs. Usually, the total amount of annual issuance is
estimated on the basis of amortisations of principal and interest of foreign currency debt
falling due. The amount to be issued is, however, subject to a ceiling specified by law,
whereby Parliament authorises the Government to issue foreign currency instruments
up to a certain amount. The Minister of Finance then obtains a Council of Ministers
resolution delegating him to sign and implement the Eurobond transaction under the
ceiling ratified by Parliament.
The Government is authorised by law to issue Treasury bills in Lebanese pounds for
short and medium terms and cannot exceed the annual financing requirements of
the Treasury (which includes the budget deficit and amortisations falling due). The
Government has to notify parliament of any issuance amount which exceeds the actual
deficit of budget execution including the credits carried forward from the previous year
and any additional credits by submitting quarterly reports explaining the causes of this
excess borrowing.
The PDD also borrows for on-lending. In 99, the Ministry of Finance issued a USD
00 million Eurobond (IBRD guaranteed) to finance a utility project for Electricité du
Liban. Moreover, the Ministry of Finance provides treasury advances (which it has to
borrow) to settle principal and interest due on this project.
Lebanon does not have a published annual issuance target. The issuance strategy,
including the annual issuance target in both domestic and foreign currencies, is
developed internally at the Ministry of Finance.
The domestic interest rate is set by the Ministry of Finance, which is also in charge of
debt and cash management decisions.
Table 4 below details all outstanding international Lebanese bond issues as of end-
September 200. Outstanding Government debt securities are listed on the Beirut
Stock Exchange (www.bse.com.lb). Eurobonds are also listed on the Luxembourg Stock
Exchange. (www.bourse.lu).
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Republic of Lebanon –
Issuance Overview
Table 3: Domestic
Currency Issue Size Launch Maturity
Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 0,000 0-Jul-0 0-Jul-0 4.00 Coupons
LBP 20,0 -Sep-0 -Mar-0 4.00 Coupons
LBP 0,0 2-Sep-0 2-Mar-0 4.00 Coupons
LBP 44,440 2-Sep-0 20-Mar-0 4.00 Coupons
LBP ,20,000 02-Oct-0 0-Mar-0 4.00 Coupons
LBP 242,000 09-Oct-0 0-Apr-0 4.00 Coupons
LBP 2,000 -Oct-0 -Apr-0 4.00 Coupons
LBP 490,000 2-Oct-0 20-Apr-0 4.00 Coupons
LBP 24,000 0-Oct-0 2-Apr-0 4.00 Coupons
LBP 9,4 0-Nov-0 0-Nov-0 .4 Coupons
LBP 4,040 0-Nov-0 02-Nov-0 .2 Coupons
LBP 9,22 20-Nov-0 -Nov-0 .4 Coupons
LBP 0,4 20-Nov-0 -Nov-0 . Coupons
LBP 4,9 04-Dec-0 0-Dec-0 .4 Coupons
LBP ,9 04-Dec-0 0-Nov-0 . Coupons
LBP ,00 -Dec-0 -Dec-0 .4 Coupons
LBP 4, -Dec-0 4-Dec-0 . Coupons
LBP 2,99 0-Jan-04 29-Dec-0 . Coupons
LBP 0,2 0-Jan-04 2-Dec-0 .0 Coupons
LBP ,0 -Jan-04 2-Jan-0 .4 Coupons
LBP 9,00 -Jan-04 -Jan-0 .0 Coupons
LBP 40,29 29-Jan-04 2-Jan-0 .4 Coupons
LBP 04,2 29-Jan-04 2-Jan-0 . Coupons
LBP 4,29 2-Feb-04 09-Feb-0 .2 Coupons
LBP 0,9 2-Feb-04 0-Feb-0 . Coupons
LBP ,22 2-Feb-04 2-Feb-0 .2 Coupons
LBP 9, 2-Feb-04 22-Feb-0 . Coupons
LBP 9,4 -Mar-04 0-Mar-0 . Coupons
LBP , -Mar-04 0-Mar-0 . Coupons
LBP ,9 2-Mar-04 2-Mar-0 . Coupons
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Issuance Overview
Currency Issue Size Launch Maturity Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 2,0 2-Mar-04 22-Mar-0 . Coupons
LBP ,2 0-Apr-04 0-Apr-0 . Coupons
LBP ,2 0-Apr-04 0-Apr-0 . Coupons
LBP , 22-Apr-04 20-Apr-0 . Coupons
LBP 4,022 22-Apr-04 9-Apr-0 . Coupons
LBP 44, 0-May-04 04-May-0 . Coupons
LBP ,00 0-May-04 0-May-0 . Coupons
LBP 0,2 20-May-04 -May-0 . Coupons
LBP 22, 20-May-04 -May-0 . Coupons
LBP 2,242 0-Jun-04 0-Jun-0 . Coupons
LBP ,99 0-Jun-04 -May-0 . Coupons
LBP ,49 -Jun-04 -Jun-0 .4 Coupons
LBP 49, -Sep-04 4-Jun-0 . Coupons
LBP 22,9 0-Jul-04 29-Jun-0 .4 Coupons
LBP 0,0 0-Jul-04 2-Jun-0 . Coupons
LBP , -Jul-04 -Jul-0 .4 Coupons
LBP 49,40 -Jul-04 2-Jul-0 . Coupons
LBP 0,09 29-Jul-04 2-Jul-0 .4 Coupons
LBP 49,4 29-Aug-04 2-Jul-0 . Coupons
LBP 2,4 2-Aug-04 0-Aug-0 .4 Coupons
LBP 4,9 2-Aug-04 09-Aug-0 . Coupons
LBP ,20 2-Aug-04 24-Aug-0 .4 Coupons
LBP ,02 2-Aug-04 2-Aug-0 . Coupons
LBP 2,4 09-Sep-04 0-Sep-0 .2 Discounted
LBP , 09-Sep-04 0-Sep-0 .4 Coupons
LBP 0, 09-Sep-04 0-Sep-0 . Coupons
LBP 9, 2-Sep-04 22-Sep-0 .2 Discounted
LBP 92,92 2-Sep-04 2-Sep-0 .4 Coupons
LBP 2,92 2-Sep-04 20-Sep-0 . Coupons
LBP ,49 0-Oct-04 0-Oct-0 .2 Discounted
LBP 2, 0-Oct-04 0-Oct-0 .2 Coupons
LBP ,2 0-Oct-04 04-Oct-0 . Coupons
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Republic of Lebanon –
Issuance Overview
Currency Issue Size Launch Maturity
Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 2, 2-Oct-04 20-Oct-0 .2 Discounted
LBP 2,49 2-Oct-04 9-Oct-0 .4 Coupons
LBP 0,04 2-Oct-04 -Oct-0 . Coupons
LBP ,92 2-Oct-04 2-Oct-0 .2 Discounted
LBP ,42 04-Nov-04 0-Nov-0 .2 Discounted
LBP , 04-Nov-04 02-Nov-0 .4 Coupons
LBP 9, 04-Nov-04 0-Nov-0 . Coupons
LBP ,9 -Nov-04 0-Nov-0 .2 Discounted
LBP ,0 -Nov-04 09-Nov-0 .4 Coupons
LBP ,4 -Nov-04 0-Nov-0 . Coupons
LBP ,4 -Nov-04 -Nov-0 .2 Discounted
LBP 0,02 -Nov-04 -Nov-0 .4 Coupons
LBP 24, -Nov-04 -Nov-0 . Coupons
LBP 4, 2-Nov-04 24-Nov-0 .2 Discounted
LBP , 2-Nov-04 2-Nov-0 .4 Coupons
LBP 29,4 2-Nov-04 22-Nov-0 . Coupons
LBP ,2 02-Dec-04 0-Dec-0 .2 Discounted
LBP ,2 02-Dec-04 0-Nov-0 .4 Coupons
LBP 9,9 02-Dec-04 29-Nov-0 . Coupons
LBP ,9 09-Dec-04 0-Dec-0 .2 Discounted
LBP ,92 09-Dec-04 0-Dec-0 .4 Coupons
LBP ,0 09-Dec-04 0-Dec-0 . Coupons
LBP ,044 -Dec-04 -Dec-0 .2 Discounted
LBP , -Dec-04 4-Dec-0 .4 Coupons
LBP 2,90 -Dec-04 -Dec-0 . Coupons
LBP , 2-Dec-04 22-Dec-0 .2 Discounted
LBP ,942 2-Dec-04 2-Dec-0 .4 Coupons
LBP 2,2 2-Dec-04 20-Dec-0 . Coupons
LBP ,0 0-Dec-04 29-Dec-0 .2 Discounted
LBP 0,4 0-Dec-04 2-Dec-0 .4 Coupons
LBP ,0 0-Dec-04 2-Dec-0 . Coupons
LBP 4, 0-Jan-0 0-Jan-0 .2 Discounted
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Issuance Overview
Currency Issue Size Launch Maturity Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 9 0-Jan-0 04-Jan-0 .4 Coupons
LBP ,22 0-Jan-0 0-Jan-0 . Coupons
LBP ,449 -Jan-0 2-Jan-0 .2 Discounted
LBP 9,2 -Jan-0 -Jan-0 .4 Coupons
LBP ,90 -Jan-0 0-Jan-0 . Coupons
LBP 9, 4-Jan-0 -Jan-0 4. At maturity
LBP 2,4 -Jan-0 -Jan-0 4. At maturity
LBP 24,9 20-Jan-0 9-Jan-0 .2 Discounted
LBP 2,49 20-Jan-0 -Jan-0 .4 Coupons
LBP 9,4 20-Jan-0 -Jan-0 . Coupons
LBP ,24 2-Jan-0 2-Jan-0 .2 Discounted
LBP 2,0 2-Jan-0 2-Jan-0 .4 Coupons
LBP 2, 2-Jan-0 24-Jan-0 . Coupons
LBP ,0 0-Feb-0 02-Feb-0 .2 Discounted
LBP 0,99 0-Feb-0 0-Feb-2 .4 Coupons
LBP ,9 0-Feb-0 -Jan-0 . Coupons
LBP 0,0 0-Feb-0 09-Feb-0 .2 Discounted
LBP 2,99 0-Feb-0 0-Feb-0 .4 Coupons
LBP ,44 0-Feb-0 0-Feb-0 . Coupons
LBP ,9 -Feb-0 4-Feb-0 4.2 At maturity
LBP 4 -Feb-0 -Feb-0 .2 Discounted
LBP 2, -Feb-0 -Feb-0 .4 Coupons
LBP , -Feb-0 4-Feb-0 . Coupons
LBP ,94 -Feb-0 -Feb-0 4.2 At maturity
LBP 2,2 -Feb-0 -Feb-0 .2 At maturity
LBP ,2 24-Feb-0 2-Feb-0 .2 Discounted
LBP ,40 24-Feb-0 22-Feb-0 .4 Coupons
LBP ,,0 24-Feb-0 2-Feb-0 . Coupons
LBP , 0-Mar-0 0-Sep-0 .2 Discounted
LBP 2 0-Mar-0 02-Mar-0 .2 Discounted
LBP 20,40 0-Mar-0 2-Feb-0 . Coupons
LBP 0 0-Mar-0 0-Sep-0 .2 Discounted
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Republic of Lebanon –
Issuance Overview
Currency Issue Size Launch Maturity
Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 0-Mar-0 09-Mar-0 .2 Discounted
LBP 0-Mar-0 0-Mar-0 .4 Coupons
LBP 0,2 0-Mar-0 0-Mar-0 . Coupons
LBP 44, -Mar-0 -Sep-0 . At maturity
LBP , -Mar-0 4-Mar-0 4.2 At maturity
LBP 2, -Mar-0 -Sep-0 .2 Discounted
LBP 22 -Mar-0 -Mar-0 .2 Discounted
LBP 22 -Mar-0 -Mar-0 .4 Coupons
LBP , -Mar-0 -Mar-0 . At maturity
LBP , -Mar-0 -Sep-0 . At maturity
LBP ,42 24-Mar-0 22-Sep-0 .2 Discounted
LBP 242 24-Mar-0 2-Mar-0 .2 Coupons
LBP , 24-Mar-0 22-Mar-0 .4 Coupons
LBP ,90 24-Mar-0 20-Mar-0 . Discounted
LBP -Mar-0 29-Sep-0 .99 Discounted
LBP 0-Apr-0 29-Mar-0 . Coupons
LBP 0,24 -Mar-0 2-Mar-0 9.4 Coupons
LBP 29,9 -Mar-0 2-Mar-09 0. Coupons
LBP 202,4 -Mar-0 2-Mar-0 . Coupons
LBP 0-Apr-0 0-Oct-0 .99 Discounted
LBP 42 0-Apr-0 0-Apr-0 .9 Discounted
LBP 0-Apr-0 0-Apr-0 . Coupons
LBP 29,2 0-Apr-0 0-Apr-0 9.4 Coupons
LBP 4,0 0-Apr-0 02-Apr-09 0. Coupons
LBP 49,99 0-Apr-0 0-Apr-0 . Coupons
LBP ,2 4-Apr-0 -Oct-0 .99 Discounted
LBP 499,0 4-Apr-0 0-Apr-0 . Coupons
LBP 4 2-Apr-0 20-Apr-0 .9 Discounted
LBP 9,9 2-Apr-0 9-Apr-0 . Coupons
LBP , 2-Apr-0 -Apr-0 9.4 Coupons
LBP ,90 2-Apr-0 2-Oct-0 .99 Discounted
LBP 4,449 0-May-0 04-May-0 .9 Discounted
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Issuance Overview
Currency Issue Size Launch Maturity Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP ,40 0-May-0 0-May-0 . Coupons
LBP , 0-May-0 0-May-0 9.4 Coupons
LBP 9,9 2-May-0 0-Nov-0 .99 Discounted
LBP 0,0 9-May-0 -May-0 .9 Discounted
LBP ,40 9-May-0 -May-0 . Coupons
LBP 2,4 9-May-0 -May-0 9.4 Coupons
LBP ,29 2-May-0 24-Nov-0 .99 Discounted
LBP ,2 02-Jun-0 0-Jun-0 .9 Discounted
LBP 9,09 02-Jun-0 -May-0 . Coupons
LBP 40,094 02-Jun-0 29-May-0 9.4 Coupons
LBP 4, 09-Jun-0 0-Sep-0 . Discounted
LBP 22,4 09-Jun-0 0-Dec-0 .99 Discounted
LBP 2,02 -Jun-0 -Sep-0 . Discounted
LBP 9, -Jun-0 -Dec-0 .99 Discounted
LBP , -Jun-0 -Jun-0 .9 Discounted
LBP , -Jun-0 4-Jun-0 . Coupons
LBP 9, -Jun-0 2-Jun-0 9.4 Coupons
LBP 44,4 2-Jun-0 22-Jun-0 .9 Discounted
LBP 0,2 2-Jun-0 2-Jun-0 . Coupons
LBP 22,44 2-Jun-0 9-Jun-0 9.4 Coupons
LBP 4 2-Jun-0 2-Dec-0 . At maturity
LBP 4 2-Jun-0 2-Jun-0 4. At maturity
LBP 9,92 0-Jun-0 29-Jun-0 .9 Discounted
LBP 20,429 0-Jun-0 2-Jun-0 . Coupons
LBP 2, 0-Jun-0 2-Jun-0 9.4 Coupons
LBP ,2 0-Jul-0 0-Jul-0 .9 Discounted
LBP 2,4 0-Jul-0 0-Jul-0 . Coupons
LBP 294,24 0-Jul-0 0-Jul-0 9.4 Coupons
LBP 0,0 4-Jul-0 -Oct-0 . Discounted
LBP 202,0 4-Jul-0 2-Jan-0 .99 Discounted
LBP 40,0 4-Jul-0 -Jul-0 .9 Discounted
LBP 0,4 4-Jul-0 2-Jul-0 . Coupons
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Republic of Lebanon –
Issuance Overview
Currency Issue Size Launch Maturity
Interest Interest
(m) Date Date Rate-Yield (%) Payment
Method
LBP 4,2 4-Jul-0 0-Jul-0 9.4 Coupons
LBP 2, 2-Jul-0 20-Oct-0 . Discounted
LBP , 2-Jul-0 9-Jan-0 .99 Discounted
LBP ,2 2-Jul-0 20-Jul-0 .9 Discounted
LBP ,9 2-Jul-0 9-Jul-0 . Coupons
LBP ,4 2-Jul-0 -Jul-0 9.4 Coupons
LBP ,22 2-Jul-0 2-Oct-0 . Discounted
LBP 92,4 2-Jul-0 2-Jan-0 .99 Discounted
LBP 42,0 2-Jul-0 2-Jul-0 .9 Discounted
LBP , 2-Jul-0 2-Jul-0 . Coupons
LBP 9,42 2-Jul-0 24-Jul-0 9.4 Coupons
LBP ,04 04-Aug-0 0-Nov-0 . Discounted
LBP 94, 04-Aug-0 02-Feb-0 .99 Discounted
LBP ,9 04-Aug-0 0-Aug-0 .9 Discounted
LBP ,04 04-Aug-0 02-Aug-0 . Coupons
LBP 24,00 04-Aug-0 -Jul-0 9.4 Coupons
LBP ,0 -Aug-0 0-Nov-0 . Discounted
LBP 0, -Aug-0 09-Feb-0 .99 Discounted
LBP 4,4 -Aug-0 -Aug-0 .9 Discounted
LBP 4,00 -Aug-0 -Aug-0 . Coupons
LBP 44, -Aug-0 4-Aug-0 9.4 Coupons
LBP 4, 2-Aug-0 24-Nov-0 . Discounted
LBP 29,2 2-Aug-0 2-Feb-0 .99 Discounted
As of August 200
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Issuance Overview
Table 4: International
Lebanese Republic Eurobonds Outstanding as of end-September 2005
Currency Issue Size
Launch Maturity Coupon ISIN code
(m) Date Date (%)
USD 00 02-Jul-99 02-Jul-200 .00 US222YAA2
USD 9 -Oct-99 -Oct-200 .2 USMAB
EUR 24 0-Oct-999 0-Oct-200 . XS0024040
USD 0-Oct-999 0-Oct-2009 0.20 XS00240
USD 0 2-Apr-200 2-Apr-200 9. XS02999
USD 400 -May-200 -May-20 .2 XS0244
USD 0 0-Aug-200 0-Aug-200 0.2 XS0492
USD 2 2-May-2002 2-May-200 0.00 XS0400
USD 0 2-Jun-2002 2-Jun-200 0.00 XS0029
USD 4 02-Aug-2002 02-Aug-200 0.00 XS024009
USD 90 2-Dec-2002 2-Dec-20 .000 XS00422
USD ,0 -Dec-2002 -Dec-20 4.000 XS0004
USD 00 0-Mar-200 0-Mar-20 .000 XS00422
USD 200 2-May-200 20-May-20 .000 XS092004
Reg S Notes:
USD ,000 20-May-2004 US22PAD /
20-May-20 . Rule 44A Notes:
US22NAD
EUR 22 20-May-2004 20-May-2009 .20 XS09294
USD ,2 0-Sep-2004 0-Mar-200 .2 XS020099
USD 00 0-Sep-2004 0-Sep-202 .0 XS02002990
USD 00 2-Nov-2004 2-Nov-200 . XS0204
USD 00 2-Nov-2004 2-Nov-200 . XS02094
Reg S Notes:
month Libor XS0202 /
USD 2 0-Nov-2004 0-Nov-2009
+2 bps Rule 44A Notes:
22NAE4
USD 42 4-Dec-2004 4-Dec-2009 .000 XS0202929
USD ,000 2-Feb-200 2-Feb-200 .00 XS024004
USD 20 -May-200 -May-200 .000 XS0290
USD 20 20-Jun-200 20-Jun-200 . XS0222904
USD 20 20-Jun-200 20-Jun-20 .2 XS022294249
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Republic of Lebanon –
T- Bond Issuance
The Government conducts bond auctions; Government bonds are not underwritten.
Bond Auctions:
Government bond auctions follow a standardised procedure with a pre-published
auction timetable. Details such as category, auction date and subscription value date are
published one or two days before the auction on Reuters. These auctions are organised
by the Financial Operations Department of the BdL.
The Government does not conduct its bond auctions through a primary dealer group.
Government bond auctions are not conducted electronically – bids are received by hard
copy.
Non-competitive bids are also permitted in Lebanese auctions. There is no restriction on
the maximum allocation that a bidding party may receive.
Government bonds are also sold directly to investors.
90 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
T- Bill Issuance
The Government currently issues short-term bills via standardised auction; these issues
are not underwritten. T-bills are not used to cover long-term debt.
T-Bill Auctions:
Auctions are organised by the Financial Operations Department of the BdL. T-bill auctions
follow a published timetable. Details such as category, auction date and subscription
value date are published one or two days before the auction on Reuters.
Auctions are not conducted through a primary dealers group.
Government short-term bill auctions are not conducted electronically; bids are received
by hard copy.
T-bills are also sold directly to investors.
Non-competitive bids are also permitted.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Republic of Lebanon –
Secondary Securities Market
Liquidity:
T
Ü he BdL (Financial Operations Department) has primary responsibility for
maintaining the liquidity of the secondary securities market. The Ministry of Finance
does not intervene (either directly or indirectly) in the market.
Ü Buy back operations are used to manage cash flow.
Technology:
T
Ü here is no centralised Government quotations system or centralised inter-dealer
market.
Ü Dealers are required to publish daily quotations as well as quotations on demand.
Reforms:
Ü The BdL and the Ministry of Finance are responsible for devising and implementing
market reforms and instruments to improve the efficiency of the secondary securities
market. In this regard, the Ministry of Finance has embarked on a project to develop
a Capital Markets Law (“CML”), to provide the framework for the regulation and
development of the capital markets in Lebanon and to help build confidence in
the quality of the market for both local and foreign investors. The CML is based on
current international standards and best practice in the regulation of capital markets.
The CML will also establish the Capital Markets Council (“CMC”), a new independent
regulatory body responsible for regulating and developing the capital markets.
92 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Regulation & Accountability
Transparency:
Ü There is a full public order book for Lebanese securities.
Ü The Government publishes an issuance calendar for T-bond and T-bill auctions.
Ü These auctions are conducted according to a standard procedure.
Regulatory Body:
There is no financial market regulator, but the Ministry of Finance and the BdL have
significant supervisory functions on the primary and secondary markets for Government
securities.
The Ministry of Finance is the supervisory authority of the Beirut Stock Exchange
and is also in charge of controlling its activities. The BdL is in charge of controlling all
financial institutions as well as the Clearing Agency and the Central Security Depository
(Midclear).
More details about these organisations can be found at www.finance.gov.lb,
www.bdl.gov.lb and www.bse.com.lb.
The Ministry of Finance secured a grant from the FIRST Initiative programme (Financial
Sector Reform and Strengthening) to finance a project to develop capital markets in
Lebanon. The project was approved in June 2004 and is designed to promote stability
and safety in the financial capital markets, protect investors’ interests if subjected to
moral hazards from private financial institutions, maintain confidence in the financial
system and help enforce financial laws and regulations. The project will provide
technical assistance to () assess the current securities market and its prospects, (2)
assess the existing legislative framework, () make recommendations on the most
appropriate regulatory and supervisory regime and (4) provide a development plan for
the regulatory and supervisory body.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Republic of Lebanon –
Regulation & Accountability
Public Accounts:
A
Ü nnual Debt Management Accounts are published in the Annual Budget Execution
Report, published in the Official Gazette.
Ü The accounts are presented to the Directorate of Public Accounting (Ministry of
Finance) and to the Public Sector Audit Board (Prime Minister’s Office) for scrutiny.
Ü The Accounting Officer for the Lebanon Debt Management Account is the Head of
the Public Debt Department.
Ü An Annual Debt Management Report is not published; it is only distributed internally
in the Ministry of Finance.
94 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Republic of Lebanon
Trade, Conventions, Settlements
Ü The BdL is responsible for the clearing and settlement of Government securities.
S
Ü ettlement date is T+ for Government securities.
Ü Beirut is the business day centre for LBP-denominated Government securities.
Ü Coupon interest on Government securities is calculated on an actual/ basis for
bills and actual/4 basis for notes.
Ü Coupon interest on Government notes is paid semi-annually. T-bills are issued on a
discount basis.
Ü Yields are calculated according to the IRR and annual methods.
A
Ü ll Government securities are traded over the counter.
Ü There is a repo market for domestic Treasury securities, where the BdL is the lender.
Participants are commercial banks. The purpose of such repos is to provide funds for
banks facing shortages. The volume varies extremely depending on banks’ needs.
It could be none on normal days but reach levels of LBP 00 billion on other days
when there is a shortage of liquidity in the market.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Republic of Lebanon –
Islamic Finance
The PDD does not offer securities on an Islamic basis. However, the Ministry of Finance
had plans in 200 to issue an Islamic Ijara Sukuk transaction underwritten by a syndicate
of Islamic banks and institutions based in Bahrain. This transaction was supposed to
represent the USD 200 million contribution of the Kingdom of Bahrain at the Paris II
conference. This transaction is currently pending.
This report on Lebanese National Debt Management was compiled with information
provided by the Bank du Liban and the Ministry of Finance.
9 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Kingdom of Morocco
www.finances.gov.ma
" The Directorate of the Treasury and External Finances (DTFE) at thethe Directorate are i)and
Privatisation is responsible for managing the public debt. The tasks of
Ministry of Finance
the
definition of financing objectives and parameters; ii) definition and coverage of Treasury financing
requirements by raising the necessary domestic and foreign resources; iii) borrowing and debt
service payment; iv) dynamic management of existing debt; v) assessment and provision of the
State guarantee for the domestic and foreign borrowings of public undertakings; vi) initiation of
reforms and legislation and regulations concerning Treasury financing and the financial market
in general.
As far as financing on the domestic market is concerned, the DTFE formulates the financing
strategy and launches and oversees T-bond issues, setting the terms for domestic borrowings
and repayments. For foreign financing, the DTFE raises the requisite foreign borrowings for
financing the Treasury and public institutions and coordinates bilateral and multilateral financing
negotiations.
The DTFE manages the public debt mainly through the following three divisions:
1. The Domestic Debt Division, which is responsible for:
Ü issuing domestic borrowings and scheduling domestic debt repayments;
Ü reparing statistics and notes on domestic debt;
p
Ü onitoring transactions on the secondary market, relations with the primary dealers and
m
domestic debt guaranteed by the State;
Ü implementing a policy for managing the risks associated with the domestic debt portfolio and
market trends and introducing new instruments to protect that portfolio against these risks.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Morocco –
2. The Foreign Debt Management Division, which is responsible for:
Ü ndertaking and monitoring public-sector foreign borrowing; scheduling and settling direct
u
public debt servicing expenditure;
Ü reparing statistics on public foreign debt and analyses of overall and sectoral (by structure,
p
currency, country, activity) foreign debt;
Ü elping to formulate proposals to reduce debt servicing and/or the debt stock and
h
implementing relief measures such as the refinancing of costly debt, debt conversion and
revision of interest rates;
Ü onitoring the guaranteed debt of public institutions.
m
3. The Debt Restructuring and International Financial Market Division, which is responsible for:
Ü roviding analyses to assist the formulation of active foreign debt management policies and
p
the implementation of those policies via debt-for-equity swaps and foreign debt portfolio risk
hedging instruments;
Ü anaging relations with banks and international institutions operating on the international
m
capital markets, issuing debentures and syndicated loans on those markets, and managing
and monitoring the Kingdom of Morocco’s relations with the rating agencies.
The DTFE’s main debt objectives are:
Ü o finance the Treasury on optimal cost and risk terms with arbitrage between domestic and
t
foreign resources;
Ü o reduce the debt burden, as measured by the public debt/GDP ratio, to sustainable levels.
t
9 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
As regards domestic debt, its objectives are:
Ü o extend the average life of the domestic debt portfolio to six years;
t
Ü o keep the proportion of short-term debt below 25%;
t
Ü o even out the repayment schedule;
t
Ü o improve the liquidity of the secondary securities market.
t
The objective for foreign debt is to make the currency and rate-based structure of the foreign
debt portfolio converge with the structure of the benchmark portfolio, either by influencing the
financial terms of new financing or by taking active management measures (prepayment, debt-
for-equity and other swaps, refinancing, etc.).
"
Directorate of the Treasury and External Finances
of the Ministry of Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 99
Morocco –
Key Contacts
Position Name Telephone E-mail Address
Number
Deputy Director of Benyoussef
(+22) b.saboni@DTFE.finances.gov.ma
the DTFE SABONI
El Hassan
Head of Division (+22) 2 e.eddez@DTFE.finances.gov.ma
EDDEZ
Ali
Deputy Director (+22) 4 02 a.bedrane@DTFE.finances.gov.ma
BEDRANE
Ahmed
Head of Division (+22) 4 0 a.zoubaine@DTFE.finances.gov.ma
ZOUBAINE
Hassan
Head of Division (+22) 4 0 h.ennasr@DTFE.finances.gov.ma
ENNASR
Ministry of Finance and Privatisation
Boulevard Mohammed V
Quartier administratif
Rabat
Morocco
http://www.finances.gov.ma
00 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
Currency Regime
The Minister of Finance and Privatisation determines the currency system and sets the
parameters of foreign exchange policy. The central bank, “Bank Al Maghrib”, implements
the foreign exchange policy.
In January 99, Morocco signed up to the obligations under Article VIII of the IMF
Articles of Agreement on the convertibility of current operations. These are all standard
and current transactions involving in particular foreign trade, international transport,
insurance and reinsurance, foreign technical assistance, earned and unearned income.
The liberalisation of exchange regulations has also affected certain capital operations,
such as foreign financing raised by Moroccan undertakings and foreign investments
financed by a foreign exchange injection.
The exchange rate is set freely on the interbank foreign exchange market. Throughout
the day, Bank Al Maghrib sets the buying and selling prices for listed currencies
applicable to its transactions with banks on the basis of a basket of currencies, weighted
according to the geographical breakdown of Morocco’s foreign trade and the respective
shares of those currencies in foreign settlements. This quotation system is also based on
observance of the cross rates applied on international foreign exchange markets.
More details concerning the Central Bank of Morocco can be found at www.bkam.ma.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 0
Morocco –
Issuance Overview
The Kingdom of Morocco’s General Government Debt amounted to EUR 0 million
as of December 2004. This was comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€0,2 €20,94 €,0
Government Debt*
Loans €9,2 €9 €9,9
Securities €,0 €9,9 €2,00
*IMF definition
02 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
Issuance Overview
The split between international and domestic issuance is determined primarily by
financing conditions on the domestic market compared with those for an international
issue (interest rates, level of exchange risk and level of liquidity in the economy).
Financing requirements have hitherto been covered by weekly domestic issues, whereas
foreign borrowings are raised with bilateral and multilateral creditors. There was only
one international issue (with the signature of the Moroccan Government) in 200, which
served to refinance costly foreign borrowings.
Morocco publishes an annual domestic issuance target, which is set by the DTFE. For the
current year, this target is MAD billion.
The Moroccan Government does not borrow for on-lending.
Bank Al Maghrib is responsible for setting domestic interest rates. The DTFE has ultimate
responsibility for operational decisions on debt and cash management.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 0
Morocco –
T- Bond Issuance
Moroccan Government bonds are auctioned and issues are not underwritten.
Bond Auctions:
Moroccan Government bond auctions are organised by the DTFE. There is a standard
auction procedure and auctions follow a published timetable. Auctions take place on
the second and last Tuesdays of each month for 2, , 0 and -year bonds, and on the
last Tuesday of each month for 20-year bonds. Details are provided on the Friday before
the auction, which takes place on the following Tuesday. The notice is sent by fax to Bank
Al Maghrib, which distributes it to press agencies and via its website and Reuters.
Negotiations for primary issues are currently conducted by fax. An internal electronic
platform is being developed and will be operational from 200.
There are no restrictions on the maximum allocation that a bidding party may receive in
the case of competitive bidding. Non-competitive bids are also permitted in auctions.
The primary dealers listed in the table below are the main subscribers on the Moroccan
Government securities auction market, but do not have exclusive rights on that market
as other financial institutions (banks, etc.) are also able to bid on the auction market.
Government bonds are not sold directly to investors.
04 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
T- Bond Issuance
T-Bonds Primary Dealer Group
Name Address
BCP 0 Boulevard Mohammed Zerktouni, Casablanca, Morocco
Attijariwafa 2, boulevard Moulay Youssef, Casablanca, Morocco
CDG Place Moulay el Hassan, BP 40 Rabat, Morocco
BMCI 2 Place des Nations Unies, Casablanca, Morocco
BMCE 40 Avenue Hassan II, Casablanca, Morocco
Médiafinance R BAB Mansour Espace, Porte d’Anfa, Casablanca, Morocco
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 0
Morocco –
T- Bill Issuance
T-Bills are auctioned and issues are not underwritten. These short-term bills are not
issued to cover long-term debt.
T-Bill Auctions:
T-Bill auctions are organised by the DTFE. There is a standard auction procedure and
auctions follow a published timetable. , 2 and 2-week T-bills are issued each
Tuesday. to -week T-bills can be issued by auction outside the timetable. Details are
sent by fax on the Friday before the auction. In addition, -month T-bills reserved for
individuals are issued on tap.
Moroccan Government auctions are conducted by fax. An internal electronic platform
is being developed.
Non-competitive bids are also permitted in auctions.
The primary dealers listed in the table below are the main subscribers on the Moroccan
Government securities auction market, but do not have exclusive rights on that market
as other financial institutions (banks etc.) are also able to bid on the primary market.
T-bills are not sold directly to investors.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
T- Bill Issuance
T-Bills Primary Dealer Group
Name Address
BCP 0 Boulevard Mohammed Zerktouni, Casablanca, Morocco
Attijariwafa 2, boulevard Moulay Youssef, Casablanca, Morocco
CDG Place Moulay el Hassan, BP 40 Rabat, Morocco
BAM 2, avenue Mohamed V, BP 44 Rabat, Morocco
BMCI 2 Place des Nations Unies, Casablanca, Morocco
BMCE 40 Avenue Hassan II, Casablanca, Morocco
Médiafinance R BAB Mansour Espace, Porte d’Anfa, Casablanca, Morocco
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 0
Morocco –
Secondary Securities Market
Liquidity:
T
Ü he primary dealers are responsible for maintaining the liquidity of the secondary
securities market. The convention between it and the DTFE provides that the primary
dealers must:
≠ quote daily at least Government securities covering all maturity segments
≠ o
perate on the primary and secondary markets as a counterparty for at least %
of firm transactions on each of those markets.
Ü The DTFE does not intervene in the secondary securities market.
Ü The DTFE does not use outright sales and purchases of T-bills and securities to
manage cash flows.
Technology:
Ü The Moroccan Government uses Reuters’ quotation system.
Ü There is no centralised inter-dealer market.
Ü Dealers are required to provide daily quotations.
Reforms:
Ü The DTFE and the primary dealers are responsible for devising market reforms and
instruments to improve the efficiency of the Moroccan secondary securities market.
The DTFE is responsible for implementing those reforms.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
Regulation & Accountability
Transparency:
Ü There is no full public order book for Moroccan bonds.
Ü The Government publishes an issuance calendar for T-bond and T-bill auctions.
Ü These auctions are conducted according to a standard procedure.
Regulatory Body:
Ü The Moroccan financial markets regulator is the DTFE. More details of this
organisation can be found at www.finances.gov.ma.
Public Accounts:
T
Ü he Debt Management Accounts are submitted to the Court of Auditors for scrutiny
but not published.
Ü The General Treasury of the Kingdom of Morocco is responsible for the Debt
Management Accounts.
Ü Each year the Minister of Finance makes a statement on public finances over the past
year and the reforms to be put in place on the securities auction market during the
current year.
Ü Detailed annual domestic and foreign Debt Management Reports are published on
the Ministry of Finance’s website at www.finances.gov.ma.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 09
Morocco –
Trade, Conventions, Settlements
Ü The entity responsible for the clearing and settlement of Moroccan Government
bonds denominated in Moroccan dirhams (MAD) is Maroclear.
T
Ü he normal settlement date for Government bonds on the primary market is T+.
Ü Casablanca is the business day centre for MAD-denominated Government bonds.
Ü Interest on MAD-denominated Government bonds is paid annually.
Ü Interest is calculated on an actual/0 basis for securities with a maturity of less than
or equal to days and an actual/actual basis for bonds with a maturity of more
than days.
Ü Yields are calculated according to the IRR method.
M
Ü AD-denominated Government bonds are traded exclusively over the counter.
Ü There is a repo market for Government bonds denominated in dirhams. At present
the depositories are the direct market participants. As soon as the new statutes of
the Central Bank have been approved by parliament (under way), Bank Al Maghrib
will be able to conduct repo operations. The Treasury envisages this possibility in
connection with the introduction of active management of public finances (200-
200). The average daily volume of repo activity (2004) is approximately MAD
billion.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Morocco
Islamic Finance
The DTFE does not offer securities on an Islamic basis.
This report on Moroccan National Debt Management was compiled with information
provided by the Directorate of the Treasury and External Finances.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Palestinian National Authority
www.mof.gov.ps
" The Palestinian Debt Management Unit (DMU)started itsthe responsibility of the Central Budget
Department at the Ministry of Finance. The DMU
is under
functions at end-1999, early 2000. The
unit has since developed the following duties:
1. Record loan details
2. Follow up loan service repayments
3. Follow up the daily correspondence with creditors about loans
4. Follow up and manage on-lending of loans with creditors and debtors.
"
Ministry of Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Palestinian National Authority –
Key Contacts
Position Name E-mail Address
Director Mr Mohammed M. Shaat m_debt@hotmail.com
Officer Mr Hazem W.K. Alhorsari hazem_alhosary@yahoo.com
Officer Mr Fadi Y. B. Baker fadi_baker@hotmail.com
Officer Mr Hosam Y. Alkodari Husam_elkudary@hotmail.com
Data Base
Mr Mohammed Almashharawi mcsa2@gmail.com
Administrator
Ministry of Finance
Gaza -Tal Elhawa-Beirut St.
B. O. Box: Abu Khadra complex 400
Palestine
www.mof.gov.ps
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Palestinian National Authority
Currency Regime
The Palestinian National Authority does not have its own currency; it deals with hard
currencies (new Israeli shekel, US dollar, Jordan dinar and euro). If a national currency were
issued, the Palestinian Monetary Authority would be the responsible organisation.
More details concerning the Palestinian Monetary Authority can be found at
www.pma.gov.ps
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Palestinian National Authority –
Issuance Overview
The DMU is currently responsible for managing a total debt of EUR 0 million (as of
September 200). As the Palestine National Authority does not issue bonds, this
amount only comprises loans that have already been disbursed.
Table 1
International (m) Domestic (m) Total (m)
Central
,00. 0.00 ,00.
Government Debt*
Loans ,00. 0.00 ,00.
Securities 0.00 0.00 0.00
*IMF definition
The DMU sets the annual borrowing target. In the current year this figure is USD
, million for external loans.
The setting of domestic interest rates is the responsibility of the Palestinian Monetary
Fund. The Minister of Finance is in charge of debt and cash management decisions.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Palestinian National Authority
Issuance Overview
The Palestinian National Authority also borrows for on-lending. The Ministry of Finance
has signed loan agreements, though only a few loans have already been disbursed. On
the other hand, the Ministry of Finance has signed on-lending agreements, for example
with the Spanish and Italian governments, for the benefit of certain utilities (water,
energy) and local authorities.
The following table shows the breakdown of Palestinian outstanding loans by lender:
Loan Amount
Lender
(EUR m)
Alaqsa Fund / Arab League 4.92
World Bank (IDA) 2.20
Government of Spain 0.42
E.I.B. 9.24
A.F.E.S.D 9.04
Mediocredito Centrale S.P.A / Italy .442
Islamic Development Bank 0.400
S.I.D.A./ Sweden 9.90
Egypt Arab Land&National Banks .94
O.P.E.C. 4.2
Greece National Bank / Greece 2.4909
China Bank / China 0.44
I.F.A.D. .92
Total ,00.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Palestinian National Authority –
Issuance Overview
Palestinian National Authority
Ministry of Finance
Central Budget Department
Direct external loans according to creditor
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Palestinian National Authority
T- Bond Issuance
The Palestinian National Authority does not issue bonds.
Bond Auctions:
N
Ü /A
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Palestinian National Authority –
T- Bill Issuance
The Palestinian National Authority does not issue T-bills.
T-Bill Auctions:
N
Ü /A
20 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Palestinian National Authority
Secondary Securities Market
Liquidity:
T
Ü he Palestine Securities Market is responsible for maintaining the liquidity of the
secondary stock market.
Ü The Ministry of Finance does not intervene in the secondary stock market.
Technology:
N
Ü /A
Reforms:
Ü N/A
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
Palestinian National Authority –
Regulation & Accountability
Transparency:
Ü N/A
Regulatory Body:
Ü N/A
Public Accounts:
A
Ü nnual Palestinian Debt Management Accounts are published and can be found at
www.mof.gov.ps. The DMU submits its reports to the general budget department
of the Ministry of Finance. These are then presented to the Palestinian Legislative
Council for scrutiny.
T
Ü he Accounting Officer for the Palestinian Debt Management Account is Mr Ibrahim
Albeltage.
Ü An annual debt management report is not published.
This report on Palestinian National Debt Management was compiled
with information provided by the Ministry of Finance of Palestine.
22 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Palestinian National Authority
Trade, Conventions, Settlements
Ü N/A
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
Palestinian National Authority –
Islamic Finance
The National Palestinian Authority does not offer securities on an Islamic basis.
This report on Palestinian National Debt Management was compiled
with information provided by the Ministry of Finance of Palestine.
24 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Syrian Arab Republic 9
www.syrianfinance.org
" The Public Debt Department is part of the Ministry of Finance and carries out the following
assignments:
Ü Manages internal and external public debt affairs and issues state guarantees for public
bodies against their external contracts.
Ü anages public debt funds (movable and immovable), including inheritance funds that have
M
no inheritor, and follows up the collection of profits, returns and interest in respect of these
funds.
Ü ollows up the State’s contribution in Arabian and international institutions, companies and
F
banks, and also the transfer of the country’s share of those bodies’ profits and returns.
Ü ollows up the transfer of sums relating to the Public Debt Fund pursuant to the provisions of
F
Article 129 of the Basic Law for State Workers No. 1 of 1985 and the relevant regulations and
instructions.
Ü efines and checks compensation to be expended pursuant to the provisions of paragraph (B)
D
of Article 129, as well as the relevant regulations and instructions.
Ü repares and issues public instruments and supporting treasury instruments pursuant to the
P
provisions of the Basic Monetary System.
Ü ollects economic surpluses (budget surplus and liquidity surplus), and follows up the
C
collection of Public Debt Fund revenues.
Ü ssues loans to public and mixed sectors’ institutions and companies, to which laws allow the
I
granting of loans from the Public Debt Fund.
Ü inances bodies in charge of implementing investment projects pursuant to the credits
F
specifically allocated to them under the State’s public budget.
Ü eeps public debt accounts, follows up relations with debtors and creditors, and carries out
K
periodical identifications of the debtors and creditors.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
Syria –
9
Ü ndertakes analyses and studies and prepares monthly and annual reports on the status of
U
public debt.
Ü epresents the Ministry in external loan negotiations and in preparing drafts of their pacts.
R
Ü ives its opinion on - and handles - all projects, regulations and instructions relating to
G
internal/external public debt.
Ü n general, handles all cases relating to internal/external public debt, investment project
I
"
finance and the transfer of economic surpluses.
Ministry of Finance
Syrian Arab Republic
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
Key Contacts 9
Position Name Telephone E-mail Address
Number
Maarouf
Director (+9) 249
AL HAFEZ
Ministry of Finance
Al-Sabee Bahrat Sq.
Baghdad St.
Damascus
Syrian Arab Republic
www.syrianfinance.org
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 2
Syria –
9 Currency Regime
The organisation responsible for issuing the national currency and implementing the
foreign exchange policy is the Central Bank of Syria (CBS).
Syria has a multiple exchange rate system, which includes the following rates:
) he legally designated official rate of SP .20 / .2 per USD, which applies to
T
the payment of principal instalments and interest arising from bilateral payment
agreements.
T
2) he exchange rate for the state and public sector is SP 49. / 0.00 per USD, which
applies to:
≠ public sector exports of petroleum, all government imports (including essential
subsidised products and invisibles), and repayments of loans and interest
payments not related to bilateral payment arrangements;
≠ p
ublic commercial transactions, including:
a. remittances abroad and public sector payments that are approved by the
Committee for Foreign Exchange;
b. all public sector enterprise foreign exchange transactions.
T
) he “free exchange rate for private sector transactions”, which is the official exchange
rate set to reflect developments in the free market exchange rates in Lebanon and
Jordan. This rate is used for foreign exchange sales by authorised banks for limited
non-commercial transactions (e.g. medical, study, religious and travel expenses), for
the extension of credit to importers of raw materials needed for exports, for salaries
of staff of UN and diplomatic missions in Syria and for domestic expenses of foreign
oil companies. All non-commercial transactions may be carried out at this rate.
T
4) he unofficial rate is the “free market rate” existing in neighbouring countries (mainly
Lebanon and Jordan), and in Syria it applies to:
≠ private sector import payments;
≠ private sector remittances and receipts and payments in respect of services;
≠ private capital flows.
The free market rate is determined by private supply and demand, with market
participants matching their needs through brokers or dealers in the offshore market.
More details concerning the CBS can be found at www.bcs.gov.sy
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
Issuance Overview 9
The Central Bank of Syria is preparing for the issuance of government debt securities but
no laws have yet been enacted.
Following the restructuring of the old Soviet-era government debt to Poland, the Czech
Republic, Russia and the Slovak Republic in late 2004 and early 200, the Public Debt
Department is currently responsible for managing a total public debt of EUR 44bn.
As the Government of Syria does not issue bonds, this amount comprises only loans that
have already been disbursed.
The Total Foreign Government Debt of Syria is comprised as follows:
(Source: Central Bank of Syria, October 200)
Table 1
Foreign debt (m) Service of debt (m) Total (m)
€ €29 € 44
The annual funding target as well as the setting of domestic interest rates is the
responsibility of the Central Bank of Syria. The Ministry of Finance is in charge of debt
and cash management decisions.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 29
Syria –
9 Financial System
Syria’s government-controlled banking system previously consisted of the Central
Bank of Syria and six state-owned specialised banks: the Commercial Bank of Syria, the
Agricultural Cooperative Bank, the Industrial Bank, the Real Estate Bank, the People’s
Credit Bank and the Savings Bank.
As part of a general reform plan, licences were also issued for six private banks. Four of
these (Banque Bemo Saudi Fransi, Bank of Syria and Overseas, the International Bank for
Trade and Finance and Audi Bank-Syria) are already operating. The other two (Byblos
Bank and the Arab Bank) are already licensed and expected to be operating by the end
of 200.
The Central Bank of Syria supervises the financial sector via its Supervision Department.
The Central Bank of Syria, the Commercial Bank of Syria and all private banks operating
in Syria may engage in international transactions and hold foreign exchange deposits
outside Syria and only the Commercial Bank of Syria and the private banks are permitted
to provide commercial banking services, including letters of credit. The other state-
owned banks are restricted mainly to saving and checking accounts, and lending for
non-commercial purposes.
The banking industry accounted for USD 4.4 bn of total deposits at the end of 200, the
equivalent of % of Syria’s GDP.
There is no organised stock market or debt market in Syria. However, the Government
is currently implementing a reform programme in order to open up and improve the
financial system.
. Law 2/200 allows privately owned banks to operate in Syria (Syrians must own at
least % of the shares).
2. Law 29/200 required all Syrian banks to open secret banking accounts, known only
to their owners.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
Financial System 9
. Law 2/2002 set up the Credit and Monetary Council, which undertook the task of
organising the credit and monetary institutions in the Syrian Arab Republic by:
≠ d
eveloping the monetary and financial markets;
≠ m
aintaining the purchasing power of the Syrian currency;
≠ e
nsuring the stability of the foreign exchange rate of the Syrian currency and
securing free exchange vis-à-vis other currencies;
≠ ncreasing the scope for utilising resources and working towards improving
i
national income.
(Source: Investment Office website, October 200)
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Syria –
9 T- Bond Issuance
The Syrian Arab Republic does not issue bonds.
Bond Auctions:
Ü /A
N
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
T- Bill Issuance 9
The Syrian Arab Republic does not issue T-bills.
T-Bill Auctions:
Ü /A
N
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Syria –
9 Secondary Securities Market
Liquidity:
N
Ü /A
Technology:
N
Ü /A
Reforms:
Ü The Government is currently endeavouring to develop a capital market in the country
in order to encourage private investment. President Bashar al-Asad promulgated
Law No. 22 on June 200, which provided for the establishment of a stock and
securities market commission (“the Syrian Stock and Financial Markets Authority”). It
reports directly to the Prime Minister and its role will be to inspect and supervise the
Syrian stock market sector. The IMF has welcomed the authorities’ plan to establish
a securities commission
(Source: IMF Country Report, October 200)
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
Regulation & Accountability 9
Transparency:
N
Ü /A
Regulatory Body:
Ü The Syrian Stock and Financial Markets Authority will be responsible for regulating
the financial markets.
Public Accounts:
S
Ü yrian Debt Management Accounts are presented to the Ministry of Finance for
scrutiny annually but are not published. The Public Debt Department submits its
reports to the Ministry of Finance’s general budget department.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Syria –
9 Trade, Conventions, Settlements
Ü N/A
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Syria
Islamic Finance 9
The Syrian Arab Republic does not offer securities on an Islamic basis.
This report on Syrian National Debt Management was compiled
with information provided by the Central Bank of Syria,
the Syrian Ministry of Finance and other publicly available sources.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Tunisia 0
" The Directorate General for Debtparticular for: and Financial Cooperation (DGGDCF) at the
Ministry of Finance is responsible in
Management
Ü administering, analysing and drawing up public debt projections;
Ü issuing public debt instruments and monitoring their tradability;
Ü using new financial instruments to reduce the cost of foreign debt;
Ü monitoring indicators for public debt and national foreign debt.
"
Ministry of Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Tunisia –
0 Key Contacts
Position Name Telephone E-mail Address
Number
Jamel Belhaj (+2) 2 4
Director General Jamelbelhaj200@yahoo.fr
Abdellah (+2) 42
Ministry of Finance
Place du Gouvernement
00 Tunis - La Kasbah
Tunisia
http://www.ministeres.tn/html/ministeres/finances.html
40 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
Currency Regime 0
The Central Bank of Tunisia (CBT) is responsible for managing the foreign exchange
policy. In managing the exchange rate it aims to achieve real effective exchange rate
stability.
The Tunisian dinar (TND) is convertible for current transactions. The goal is full
convertibility by 2009.
Since the creation of the interbank foreign exchange market in 994, commercial banks
have freely determined the exchange rate for the dinar.
As part of monitoring movements in the exchange rate for the dinar, the CBT provides
daily indicative quotations of the exchange rate for the dinar against foreign currencies
based on a basket of currencies reflecting the structure of current payments.
These indicative quotations are made available to the markets via the specialised
information systems: Reuters and Telerate.
More details concerning the CBT can be found at www.bct.gov.tn.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Tunisia –
0 Issuance Overview
Tunisia’s General Government Debt amounted to EUR 2 9 million as of December
2004. This was comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€,0. €4,24. €2,9.2
Government Debt*
Loans €,02.40 €,9.00 €,20.40
Securities €,04. €,. €,.2
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
€2,20.9 4.%
Securities held by households*
Domestic Government Debt
€0.2 0.009%
Securities held by foreign investors*
*as of December 2004.
42 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
Issuance Overview 0
The split between international and domestic issuance is determined by the foreign
financing requirement (BP), external debt ratios, domestic market liquidity and interest
rates.
The Government borrows for on-lending. -% of total annual foreign financing is on-
lent to finance certain sectors.
Tunisia publishes an annual issuance target, which is set by the Government under the
Finance Law. The international issuance target set for the current year is EUR 00m, while
the domestic issuance target is TND 2 2m.
The CBT has final authority in the setting of domestic interest rates. The Ministry of
Finance, and particularly the DGGDCF, has responsibility for operational decisions on
debt and cash management.
Domestic bonds are quoted on the Reuters electronic system and can be quoted on the
Tunis stock exchange (www.bvmt.com.tn).
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Tunisia –
0 Issuance Overview
Table 3
Currency Issue Size Launch Maturity Coupon ISIN Number
(m) Date Date (%)
TND 44. 09-Feb-0 09-Feb- .00 TN0000004
TND 0.0 -Sep-04 -Sep-0 .0 TN000000
TND 449.9 4-Jul-04 4-Jul-0 .2 TN0000000
TND 4 4-Apr-04 4-Apr-4 .0 TN0000004
TND 0.0 -Jun-0 -Jun-0 . TN000000
TND .9 09-Jul-02 09-Jul-4 .2 TN0000002
TND 4. 2-Sep-0 -Sep-0 . TN0000009
TND 2.2 0-Mar-99 0-Mar-09 . TN00000002
TND 09. 2-Apr-00 2-Apr-0 . TN000000044
TND .2 -Sep-04 04-Oct-0 . TN000009
TND 4. 0-Oct-04 -Oct-0 .2 TN0000094
TND .0 04-Nov-04 0-Nov-0 . TN0000090
TND 9.0 2-Dec-04 0-Dec-0 .9 TN000009
TND 29.0 2-Dec-04 0-Jan-0 .24 TN000009
TND 4.4 2-Jan-0 0-Feb-0 . TN0000094
TND 9. 0-Mar-0 04-Apr-0 .9 TN00000992
TND 4.9 0-May-0 09-May-0 .9 TN0000020
TND 2.4 2-May-0 0-Jun-0 . TN000002024
TND .0 0-Jun-0 -Jul-0 . TN00000202
TND 2.4 04-Aug-0 29-Aug-0 .4 TN000002040
As of August 200
44 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
Issuance Overview 0
Table 4
Currency Issue Size Launch Maturity Coupon ISIN Number
(m) Date Date (%)
XS0222292
EUR 400 09-Jun-200 22-Jun-2020 4.00 XS022200
XS090092204
EUR 40 -Mar-2004 0-Apr-20 4.0 XS022200
EUR 0 4-Feb-200 20-Feb-20 .20 XS049
XS000242
EUR 22 -Jul-999 0-Aug-2009 .00 US0IPAA
USD 0 9-Apr-2002 2-Apr-202 . US0AF2
USD 20 -Sep-99 9-Sep-200 .00 US0AA9
USD 0 -Sep-99 9-Sep-202 .20 US0AB
JPY ,000 2-Sep-99 2-Sep-20 4.90 JP0AS9
JPY ,000 0-Sep-99 29-Sep-200 .000 JP0AR94
JPY 2,00 -Jul-99 -Aug-20 4.0 JP0AT4
JPY 20,000 09-Mar-200 -Mar-20 4.200 XS0242
JPY ,000 09-Mar-200 2-Mar-200 2.20 JP0A2
JPY ,000 9-Jul-2000 02-Aug-200 4.00 XS042
JPY ,000 9-Jul-2000 02-Aug-200 .00 JP0A02
JPY 0,000 0-Feb-200 0-Feb-20 .00 XS02004
As of August 200
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Tunisia –
0 T- Bond Issuance
Government bonds are auctioned on the domestic market. Issues are not
underwritten.
Bond Auctions:
Auctions of Government bonds (fungible T-bonds) on the domestic market are organised
by the DGGDCF at the Ministry of Finance. There is a standard auction procedure and
auctions follow a published timetable. Details are provided on the last Tuesday of the
month on Reuters. The auction takes place on the first Tuesday of the following month
and the detailed results are announced the following day.
The Government conducts its bond auctions through an established group of banks and
stock exchange intermediaries (see details below).
Government auctions are conducted by post.
Non-competitive bids are also permitted in auctions. There are no restrictions on the
maximum allocation that a bidding party may receive.
Government bonds are not sold directly to investors.
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
T- Bond Issuance 0
Tunisian Primary Dealer Group
Name Address
Banque d’habitat (BH) 2 Av Kheireddine Pacha 002 Tunis, Tunisia. Fax: 49
L’union internationale des 0 Rue d’Egypte 002 Tunis, Tunisia.
banques (UIB) Fax: 2
Société tunisienne des banques Rue Hédi Nouira 00 Tunis, Tunisia.
(STB) Fax: 9
Union bancaire du commerce et Av de la liberté le Belvedére,002 Tunis, Tunisia.
de l’industrie (UBCI) Fax: 400
Banque du sud (BS) Av de la liberté 002 Tunis, Tunisia. Fax: 949
Banque de Tunisie (BT) 2 Rue de Turquie 00 Tunis, Tunisia. Fax: 42
Amen banque (AB) Av Mohamed V 000 Tunis, Tunisia. Fax: 402
Banque internationale arabe de 02 Av Habib Bourguiba Tunis, Tunisia.
Tunisie (BIAT) Fax: 4
Citibank Av Jugurtha 002 Tunis, Tunisia. Fax:
Banque arabe de Tunisie (ATB) 09 Rue Hédi Nouira Tunis, Tunisia.
Fax: 22
Tunisie valeurs Rue de Jérusalem 002 Tunis, Tunisia. Fax: 9
Banque nationale agricole (BNA) Rue Hédi Nouira 00 Tunis, Tunisia.
Fax: 40
BNA Capitaux Av du Japon Immeuble Ennouzha - Montplaisir 0 Tunis, Tunisia.
Fax: 42
Sud invest Av de la liberté 002 Tunis, Tunisia. Fax: 420
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 4
Tunisia –
0 T- Bill Issuance
T-bills are auctioned. These short-term bills are not issued to cover long-term debt.
T-Bill Auctions:
Short-term bill auctions are organised by the DGGDCF at the Ministry of Finance. There
is a standard auction procedure and auctions follow a published timetable. Details are
provided each Tuesday on Reuters. Auctions take place on the following Thursday and
the detailed results are announced the same day.
The Government conducts its bill auctions through an established group of banks and
stock exchange intermediaries (see details below).
Government auctions are conducted by post.
Non-competitive bids are also permitted in auctions.
T-bills are not sold directly to investors.
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
Secondary Securities Market 0
Liquidity:
T
Ü he banks and primary dealers are responsible for maintaining the liquidity of the
secondary securities market.
Ü The Ministry of Finance can intervene indirectly in the secondary securities market
through the DGGDCF.
Ü The Ministry of Finance can use outright sales and purchases of T-bills and securities
to manage cash flows.
Technology:
T
Ü he Government uses Reuters’ electronic quotation system.
Ü There is also a centralised inter-dealer market. Dealers are required to provide daily
quotations and quotations on demand to the primary dealer group, banks and
investors.
Reforms:
Ü The DGGDCF is responsible for devising and implementing market reforms and
instruments to improve the efficiency of the Tunisian domestic secondary securities
market.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 49
Tunisia –
0 Regulation & Accountability
Transparency:
Ü There is no full public order book for Tunisian securities.
Ü The Government publishes an issuance calendar for T-bond and T-bill auctions on
the domestic market.
Ü These auctions are conducted according to a standard procedure.
Regulatory Body:
Ü The Tunisian financial markets regulator is the Financial Market Council. More details
of this organisation can be found at www.cmf.org.tn.
Public Accounts:
T
Ü he Debt Management Accounts are submitted to the Court of Auditors for scrutiny.
The DGGDCF does not publish annual accounts because it is not a financially
autonomous agency.
Ü The Treasurer General is responsible for the Debt Management Accounts.
Ü An annual report – the “Debt Book” – is published.
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
– Tunisia
Trade, Conventions, Settlements 0
Ü Société tunisienne interprofessionnelle pour la compensation et le dépôt de valeurs
mobilières (STICODEVAM) is the entity responsible for the clearing and settlement of
bonds.
T
Ü he normal settlement date for bonds in the primary market is T+ for short-term
T-bills and T+ for fungible T-bonds. In the secondary market the normal settlement
date is T+ for both fungible T-bonds and short-term T-bills.
Ü Tunis is the business day centre for TND-denominated Government bonds.
Ü Interest on Government bonds is paid annually.
Ü Interest is calculated on an actual/ basis for bonds of more than one year and an
actual/0 basis for bonds of less than one year.
Ü Yields are calculated according to the actuarial method for fungible T-bonds and the
proportional (in fine) method for short-term T-bills.
A
Ü ll TND-denominated Government bonds are traded over the counter. Securities are
purchased and sold directly between dealers.
Ü Procedures (legislation, regulations and framework agreement) have been put in
place for the repo market. The CBT and the Treasury are authorised to operate on
this market. However, there have not been any transactions to date.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Tunisia –
0 Islamic Finance
The DGGDCF at the Ministry of Finance does not offer securities on an Islamic basis.
This report on Tunisian National Debt Management was compiled with information provided
by the Directorate General for Debt Management and Financial Cooperation.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkey – Turkiye
www.treasury.gov.tr
" With the aimofofdebt and claims, Law No 4749 on the “Organisation of the Public Financing and
management
increasing fiscal discipline, transparency, accountability and effectiveness in the
Debt Management” was put into effect in April 2002. The enactment of the Law was followed by
several subregulations defining the basic principles and framework for debt and risk management
and some organisational and functional changes in debt management operations at the
Treasury.
Within the Treasury, debt management operations are conducted by two separate general
directorates namely GD of Public Finance and GD of Foreign Economic Relations based on
domestic and external borrowing.
The Debt Management Committee (DMC), meeting regularly under the supervision of the Minister
or the Undersecretary, consists of the Deputy Undersecretaries and three General Directors
(Directors of Public Finance, Foreign Economic Relations and Economic Research Directorates)
and serves as a decision making and co-ordination mechanism in debt management.
As part of the organisational evolution in debt management, a new unit, which provides technical
assistance to the DMC, was established in 2002. The “Middle Office”, organised as a Deputy General
Directorate at the Directorate of Public Finance is mainly responsible for formulating the risk-based
debt and claims management strategy, monitoring the associated risks and reporting them to the
DMC for decision-making.
The “Communiqué on the Principles and the Procedures for the Coordination and the
Administration of Debt and Risk Management”, drawn up within the framework of Law No 4749
and published in the Official Gazette of 1 September 2002, defines the basic principles of debt and
risk management as follows:
a) Maintenance of a sustainable, transparent and accountable borrowing policy in
conformity with monetary and fiscal policies taking account of macroeconomic
balances, and
b) Fulfilment of financing requirements at the lowest cost possible in the medium and
long term within the context of levels of risk determined in accordance with domestic
and external market conditions and cost factors.
"
Turkish Treasury
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey – Turkiye
Key Contacts
Position Name Telephone E-mail Address
Number
Deputy Director M. Coşkun
+90 2 204 0 cokun.cangoz@hazine.gov.tr
General Director CANGOZ
Head of Market Ufuk
+90 2 204 0 ufuk.hazirolan@hazine.gov.tr
Risk Department HAZIROLAN
Head of Domestic
A. Mert
Debt Management +90 2 204 029 mert.sunar@hazine.gov.tr
SUNAR
Department
Head of Domestic
Debt Transactions Nilgün
+90 2 204 00 nilgun.pehlivan@hazine.gov.tr
and Statistics PEHLİVAN
Department
Mehmet Tolga
Treasury Expert +90 2 204 tolga.yucel@hazine.gov.tr
YUCEL
Turkish Treasury
İnönü Bulvarı No: 00 Emek/
ANKARA
Turkey
www.treasury.gov.tr
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
Currency Regime
The Central Bank of Turkey (CBT) is responsible for managing the currency system.
Since the foreign exchange policy regime of Turkey is free float, exchange rates are
determined according to the supply and demand conditions in the market. Pursuant to
Decree Law No. 2 issued in August 99 and amended in June 99, the Government
eased restrictions on the convertibility of the currency, and therefore the Turkish Lira
(TRY) is now fully convertible. As the exchange rate system is free float TRY is not linked
to any foreign currency.
More details concerning the CBT can be found at www.tcmb.gov.tr.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey –
Issuance Overview
The Turkish General Government Debt amounted to EUR 202 4 m as of end July 200.
This was comprised as follows:
Table 1
International (m) Domestic (m) Total (m)
Central
€,. €4,92.9 €202,4.4
Government Debt*
Loans €29,2.2 €0.00 €29,2.2
Securities €2,4. €4,92.9 €2,2.2
*IMF definition
Table 2
Percentage of Total
Amount (m)
Domestic Securities
Domestic Government Debt
€0,9.4 20.4%
Securities held by households*
Domestic Government Debt
€2,9. .9%
Securities held by foreign investors*
*As of end July 200.
According to PFMP Law No. 449 the split between the domestic and international
issuance is determined by residency. If the issuance is made in Turkey it is treated as
domestic ; if it is made outside Turkey it is treated as international.
Turkey does not have an annual issuance target.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
Issuance Overview
The Turkish Treasury also borrows for on-lending in order to promote development in
various sectors of the economy and/or to meet the financial requirements of the public
agencies and establishments not included in the general and annexed budget.
The CBT has final authority in the setting of domestic interest rates.
The Turkish Treasury has ultimate responsibility for operational decisions on debt and
cash management.
Information about outstanding government debt securities can be found at
www.treasury.gov.tr. Domestic government debt securities are also listed on the Istanbul
Stock Exchange (www.imkb.gov.tr).
Tables to detail all outstanding domestic Turkish Government debt securities sold via
auctions (T-Bills, domestic bonds and Eurobonds) as of July 200.
Table 3: Treasury bills
Currency Issue Size Launch Date Maturity Date Coupon ISIN Number
(m)
TRY ,.22 2-Jul-200 0-May-200 zero coupon TRB000T4
TRY 2.0 2-Jul-200 0-May-200 zero coupon TRB000T4
TRY 2,04.00 20-Jul-200 9-Oct-200 zero coupon TRB900T0
TRY ,.2 0-Jul-200 0-Apr-200 zero coupon TRB0040T
TRY ,49. 29-Jun-200 0-Apr-200 zero coupon TRB0040T
TRY ,290.00 -Jun-200 4-Sep-200 zero coupon TRB4090T
TRY ,229.0 2-May-200 2-Nov-200 zero coupon TRB20T
TRY ,.2 -May-200 0-Feb-200 zero coupon TRB0020T2
TRY 2,04. 2-Apr-200 2-Nov-200 zero coupon TRB20T
TRY ,2.04 0-Apr-200 04-Jan-200 zero coupon TRB0400T
TRY 2. 0-Apr-200 04-Jan-200 zero coupon TRB0400T
TRY 90. 2-Mar-200 09-Nov-200 zero coupon TRB090T
TRY ,.00 2-Feb-200 24-Aug-200 zero coupon TRB2400T
TRY ,40.20 2-Jan-200 09-Nov-200 zero coupon TRB090T
TRY ,9. 0-Nov-2004 2-Sep-200 zero coupon TRB2090T2
TRY . 0-Nov-2004 2-Sep-200 zero coupon TRB2090T2
TRY 2,.2 2-Oct-2004 0-Aug-200 zero coupon TRB000T
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey – Turkiye
Issuance Overview
Table 4: Government bonds
Currency Issue Size Launch Date Maturity Coupon ISIN Number
(m) Date
TRY ,49.22 2-Jul-200 0-Mar-200 zero coupon TRT000T
USD 0.20 -Jul-200 09-Jul-200 Libor+.% TRT0900F0
TRY ,004.4 0-Jul-200 24-Jan-200 zero coupon TRT2400T2
TRY 2,. 29-Jun-200 -Feb-200 FRN TRT020T
USD 2,4. 22-Jun-200 2-May-200 Libor+.% TRT200F9
USD ,9.4 0-Jun-200 2-May-200 Libor+.% TRT200F9
TRY 4,44.2 2-May-200 24-Jan-200 zero coupon TRT2400T2
TRY ,4.90 -May-200 0-Nov-200 zero coupon TRT00T
TRY ,94. -May-200 -Feb-200 FRN TRT020T
TRY ,20. 2-Apr-200 0-Nov-200 zero coupon TRT00T
TRY ,20.0 2-Apr-200 -Feb-200 FRN TRT020T
TRY ,.2 20-Apr-200 0-Nov-200 zero coupon TRT00T
TRY 2,9.4 2-Mar-200 -Feb-200 FRN TRT020T
TRY ,.9 2-Mar-200 2-Sep-200 zero coupon TRT2090T2
TRY 2,492.4 2-Feb-200 -Feb-200 FRN TRT020T
USD ,29. -Feb-200 -Feb-200 Libor+.% TRT020F9
TRY 2,4.0 -Feb-200 0-Feb-200 .00% TRT0020T2
TRY ,0.9 09-Feb-200 2-Sep-200 zero coupon TRT2090T2
TRY 4,9.40 2-Jan-200 09-Aug-200 zero coupon TRT0900T
TRY ,9.2 9-Jan-200 -Oct-200 20.00% TRT00T0
TRY ,44. 2-Jan-200 -Sep-200 FRN TRT090T
TRY ,02.4 -Dec-2004 0-Jul-200 zero coupon TRT000T0
USD 2,.02 0-Dec-2004 2-Nov-200 Libor+.% TRT20F2
TRY 2,04. 24-Nov-2004 24-May-200 zero coupon TRT2400T9
TRY ,. 0-Nov-2004 24-May-200 zero coupon TRT2400T9
TRY ,022.4 2-Oct-2004 2-Apr-200 zero coupon TRT2040T4
TRY 2,9.2 20-Oct-2004 -Oct-200 20.00% TRT00T0
TRY ,9.0 22-Sep-2004 -Sep-200 FRN TRT090T
TRY 2,409.2 22-Sep-2004 2-Apr-200 zero coupon TRT2040T4
USD ,4. 0-Sep-2004 0-Sep-200 zero coupon TRT0090F
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
Issuance Overview
Currency Issue Size Launch Date Maturity Coupon ISIN Number
(m) Date
TRY ,9.0 0-Sep-2004 0-Dec-200 zero coupon TRT020T2
USD ,4.4 -Aug-2004 2-Mar-200 Libor+2.% TRT200F9
TRY 2,24. -Aug-2004 22-Feb-200 zero coupon TRT22020T4
TRY 2,9.22 -Aug-2004 22-Feb-200 zero coupon TRT22020T4
TRY 2,. 0-Jul-2004 4-Jun-200 FRN TRT400T0
TRY ,02. 0-Jul-2004 0-Dec-200 zero coupon TRT020T2
TRY ,9.29 -Jun-2004 4-Jun-200 FRN TRT400T0
TRY ,2.4 2-May-2004 0-Oct-200 zero coupon TRT000T
TRY .0 0-May-2004 -Mar-200 FRN TRT00T2
TRY ,0. 2-Apr-2004 -Mar-200 FRN TRT00T2
TRY 2,9.29 2-Apr-2004 0-Oct-200 zero coupon TRT000T
USD ,0.0 -Oct-2004 2-Apr-200 zero coupon TRT2040F4
TRY 2,009.0 0-Apr-2004 24-Aug-200 zero coupon TRT2400T
TRY .0 2-Mar-2004 -Mar-200 FRN TRT00T2
USD .2 24-Mar-2004 2-Mar-200 Libor+2.% TRT200F9
TRY 2,42.4 -Mar-2004 -Mar-200 FRN TRT00T2
TRY ,. 0-Mar-2004 24-Aug-200 zero coupon TRT2400T
TRY 2,2. -Feb-2004 -Jan-200 FRN TRT00T
TRY 2.94 2-Jan-2004 -Nov-200 zero coupon TRT0T2
TRY ,9. 2-Jan-2004 -Jan-200 FRN TRT00T
TRY 0. 4-Jan-2004 -Nov-200 zero coupon TRT0T2
TRY ,4. -Dec-200 -Nov-200 zero coupon TRT0T2
USD 0.0 0-Dec-200 9-Oct-200 zero coupon TRT900F
TRY ,024. 0-Dec-200 9-Oct-200 FRN TRT900T0
TRY ,4.40 9-Nov-200 -Nov-200 zero coupon TRT0T2
TRY . 2-Nov-200 9-Oct-200 FRN TRT900T0
TRY ,94.42 22-Oct-200 9-Oct-200 FRN TRT900T0
USD 49. 22-Oct-200 9-Oct-200 zero coupon TRT900F
EUR 02.09 24-Sep-200 2-Sep-200 zero coupon TRT2090F2
USD ,.9 24-Sep-200 2-Sep-200 zero coupon TRT2090F
TRY 4,09. -Jun-200 4-Jun-200 Libor+2.% TRT400F
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Turkey – Turkiye
Issuance Overview
Table 5: Eurobonds
Currency Issue Type Issue
Launch Maturity Coupon ISIN Number
Size (m) Date Date (%)
EUR Euro Euro 0 0-Jul-0 0-Jul-2 4. XS022922
USD Global $ ,20 0-Jun-0 0-Jun-20 US9002AX
EUR Euro Euro ,000 -Feb-0 -Feb- . XS02294920
USD Global $ 2,000 24-Jan-0 0-Feb-2 . US9002AW0
USD Global $ ,00 0-Oct-04 -Mar- .2 US9002AV22
EUR Euro Euro 00 2-Sep-04 2-Sep-09 . XS020
USD Global $ 0 0-Jun-04 0-Jun- 9 US9002AU49
EUR Euro Euro ,000 0-Feb-04 0-Feb-4 . DE000A0AU9
USD Global $ ,00 4-Jan-04 4-Feb-4 US9002AT
USD Global $ ,20 24-Sep-0 -Jan-4 9. US9002AS92
EUR Euro Euro 0 -Jun-0 -Jan- 9. XS004
EUR Euro Euro 00 24-Jan-0 24-Jan-0 9. DE000442
USD Global $ ,00 4-Jan-0 4-Jan- US9002AR0
USD Global $ ,00 -Nov-02 -Jan-0 0. US9002AQ
EUR Euro Euro 0 0-May-02 0-May-0 9. DE00040
USD Global $ ,0 9-Mar-02 9-Mar-0 9. US9002AP
USD Global $ ,000 22-Jan-02 2-Jan-2 . US9002AN0
USD Global $ ,000 2-Nov-0 2-Nov-0 . US9002AM2
USD Global $ ,00 -Jun-00 -Jun-0 . US9004AB
EUR Euro Euro ,000 09-Feb-00 09-Feb-0 9.2 DE00042
USD Global $ ,00 -Jan-00 -Jan-0 . US9002AL40
EUR Euro Euro 0 0-Nov-99 0-Nov-0 9.2 XS0044
EUR Euro Euro 400 2-Aug-99 2-Aug-0 9.2 DE0009402
USD Global $ ,20 2-Jun-99 -Jun-09 2. US9002AJ9
USD Global $ 00 -Dec-9 -Dec-0 2 US9002AH
EUR Euro Mark 20-Apr-9 20-Apr-0 .0* DE00020940
EUR Euro Euro ,00 22-Oct-9 22-Oct-0 .2 DE000920
USD Euro Dollar 00 9-Sep-9 9-Sep-0 0 XS000409
JPY Euro Yen 0,000 -Jan-9 -Feb-0 .2 XS00999
* Step-down coupon (0.% for the first 2 years, .0% thereafter)
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
T- Bond Issuance
The Government conducts bond auctions, but also sells via taps (offerings of bonds at
a predetermined price via the Central Bank), direct sales (the Treasury sells to a specific
counterparty) and public offerings (sale to public at a predetermined price via primary
dealers). Government bonds are not underwritten.
Bond Auctions:
There is a standard auction procedure but it does not follow a published timetable.
The Domestic Debt Management Department within the General Directorate of Public
Finance organises these auctions but auctions are physically carried out by the CBT as
the fiscal agent of the Treasury.
Issue details such as auction date, value date, maturity date, type of currency and security
are provided two business days in advance. The notice is posted on the Treasury website
and announced through Reuters.
The issues are not made through an established group of Banks.
There are only restrictions on the allocation that a bidding party may receive for reference
auctions in which the borrowing amount is announced in advance.
Auctions are conducted electronically via the Electronic Fund Transfer (EFT) system.
Non-competitive bids are permitted and bonds can be sold directly to investors.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey – Turkiye
T- Bill Issuance
The Government auctions short-term Treasury bills. T-bills can be issued to cover long-
term debt, although their breakdown is not available.
T-Bill Auctions:
T-bill auctions follow a standard procedure but there is not a published timetable.
Auctions are organised by the Domestic Debt Management Department within the
General Directorate of Public Finance but they are carried out by the Central Bank.
Two days before the auction, issue details are published on the Treasury website as well
as announced through Reuters.
There are only restrictions on the allocation that a bidding party may receive for reference
auctions in which the borrowing amount is announced in advance. In this case, T-bills
auctions are made through an established group of Banks (primary dealers), information
on which can be found at the Treasury’s website. (www.treasury.gov.tr).
Auctions are conducted electronically via the Electronic Fund Transfer (EFT) system.
Non-competitive bids are permitted and T-bills can be sold directly to investors.
T-Bills Primary Dealer Group (auctions)
Name Address
AKBANK Sabancı Center 40 4. Levent/İstanbul. Turkey.
DEUTSCHE BANK Eski Büyükdere cad. Büyükdere Cad. No: 209 Tekfen Tower Kat:
4. Levent / İstanbul. Turkey.
DIȘBANK Yıldız Posta Caddesi No: 4 4 Gayrettepe/İstanbul. Turkey.
FİNANSBANK Büyükdere Caddesi No: 29 494 Mecidiyeköy/İstanbul. Turkey.
HSBC BANK Ayazağa mah. Ahi Evren cad. Dereboyu sok. 49 Maslak / İstanbul.
Turkey.
OYAKBANK A.Ș. Eski Büyükdere Caddesi Ayazağa Köy Yolu No:
49 Maslak/İstanbul. Turkey.
T.GARANTİ BANKASI A.Ș. Levent Nispetiye Mahallesi Aytar Caddesi No:2 440 Beşiktaş/İstanbul.
Turkey.
T.ÍȘ BANKASI A.Ș İş Kuleleri 40 Levent/İstanbul. Turkey.
T.VAKIFLAR BANKASI Atatürk Bulvarı No: 20 0 Kavaklıdere/ANKARA. Turkey.
T.HALK BANKASI A.Ș İrtibat Bürosu
Meclis-i Mebusan Caddesi No: 9 0040 Salıpazarı-İstanbul. Turkey.
YAPI VE KRED0 BANKASI Yapı Kredi Plaza D Blok 40 Levent/ İstanbul. Turkey
T.C. ZÍRAAT BANKASI Büyükdere Caddesi No: 4 Kat: 00 Maslak/İstanbul. Turkey.
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
Secondary Securities Market
Liquidity:
T
Ü he CBT and the Istanbul Stock Exchange are jointly responsible for maintaining the
liquidity of the secondary market.
T
Ü he Domestic Debt Management Department within the General Directorate of
Public Finance intervenes indirectly in the secondary securities market through a
set of agreements written in the primary dealership contract – for example primary
dealers give quotations for benchmark issues within defined spreads.
Ü The Domestic Debt Management Department uses outright sales and purchases of
T-bills and buys back securities to manage cash flows.
Technology:
T
Ü here is a centralised quotation system called OTAS (Automatic Bond Buying and
Selling System).
T
Ü here is a centralised inter-dealer market.
A
Ü s daily quotations can be monitored via OTAS screen, dealers are not required to
provide daily quotations. However, dealers are required to provide quotations on
demand to the Treasury’s domestic debt department, for benchmark issues.
Reforms:
T
Ü reasury, CBT, Stock Exchange and Capital Market Board are responsible for devising
and implementing market reforms and instruments to improve the efficiency of the
market.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey – Turkiye
Regulation & Accountability
Transparency:
T
Ü he Government does not publish an issuance calendar for either T-bond or T-bill
auctions.
Ü These auctions are conducted according to a standard format.
Ü A full public order book of Government securities holdings does not exist in
Turkey.
Regulatory Body:
T
Ü he Capital Market Board (www.spk.gov.tr) and Banking Regulation and Supervision
Agency (www.bddk.org.tr) are the financial markets regulators.
Public Accounts:
T
Ü he Final Accounts Law is approved by Parliament with the following year’s
Budget Law. The Final Accounts Law for 200 can be found at http://www.tbmm.
gov.tr/kanunlar/k2.html. The “Final Accounts Law” for 2004 will be passed by
Parliament with the 200 budget law.
T
Ü he Court of Accounts on behalf of Parliament scrutinises the Debt Management
Accounts.
T
Ü he “Sayman”, an official of the General Directorate of Public Finance, is the
Accounting Officer for the Debt Management Accounts.
A
Ü Debt Management Report is published quarterly (English version annually) on
the Treasury’s website www.treasury.gov.tr.
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Turkiye – Turkey
Trade, Conventions, Settlements
Ü T
he CBT as the agent of the Treasury is responsible for clearing and settlements
of Government bonds in the primary market. Meanwhile Takasbank (Settlement
Bank) is the entity in charge for the secondary market.
Ü he normal settlement date for Turkish securities in the primary market is T+ and/
T
or T+2 depending on on the payment date; for the secondary market, it is the same
day (T+0) for all domestic Government bonds (denominated in TRY or in other
currencies).
Ü A
nkara is the business day centre for TRY-denominated Government bonds.
Ü nterest on Turkish Government bonds is calculated on an actual/4 basis.
I
Ü I
nterest on Turkish Government bonds is paid semi-annually.
Ü ields are calculated according to the IRR method.
Y
Ü G
overnment bonds are traded over the counter (.2% as of June 200) and in the
Istanbul Stock Exchange (4.4% as of June 200).
Ü T
here is a repo market for Turkish Government bonds. The CBT and other market
participants take part in the repo market. The purpose is liquidity management for
banks.
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
Turkey – Turkiye
Islamic Finance
The Turkish Treasury does not offer securities on an Islamic basis.
This report on Turkish National Debt Management was compiled
with information provided by the Turkish Treasury.
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
Summary tables 2
This Handbook was compiled with the aid of a questionnaire which was sent to the
financial authorities of the relevant countries. For purposes of comparison between
the various countries and for ease of reference, the following summary of the replies
received is provided.
Ü Currency regime
Ü Public debt size/decision-making
Ü Targets, outstanding debt
– Targets for 200: International/Domestic issuance
– International/Domestic debt outstanding
– Securities/Loans outstanding
– Domestic Government Debt Securities held by households/foreign investors
Ü Primary bond market information
Ü Short-Term Bill issue procedure
Ü Secondary market liquidity
Ü Accountability
Ü Trade, conventions, settlements
Ü Islamic finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Currency Regime
Algeria Egypt Palestine Israel Jordan
Is the currency Convertible Yes Not applicable Yes Yes
freely for current
convertible? transactions
What is the None None Not applicable None USD
currency pegged
to?
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
Yes Convertible No Convertible Yes
for current for current
transactions transactions
and certain (goal of full
capital convertibility
transactions by 2009)
USD Basket of Not available Basket of None
currencies Currencies
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
2 Public debt size/decision-making
Algeria Egypt Palestine Israel Jordan
Targets? No Yes Yes Yes Yes
Who sets MoF Debt Governor of
targets? Management Bank
Unit of Israel
What determines Not Diversification, There is no External debt Public Debt
split domestic/ applicable interest rates domestic at ratio Law
international? and projects issuance of 2%
to be of total debt
financed
Borrowing for No No Yes No No
on-lending?
Responsible Directorate MoF MoF MoF MoF
for debt/cash General of
management? the Treasury
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
No Yes Yes Yes No
Directorate of Central Bank Government
the Treasury of Syria in framework
and External of Finance
Finances of Law
MoF
Treasury’s Financing Not available Foreign Residency,
foreign conditions financing according to
currency on the requirement PFMP Law
financing domestic (BP), external No. 449
needs & debt ratios,
international domestic
markets market
liquidity and
interest rates
Yes No Not available Yes Yes
MoF Directorate of Ministry of Ministry of Minister in
the Treasury Finance Finance charge of
and External Treasury
Finances
of MoF
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Targets, outstanding debt
Table 1: Targets for 2005: International/Domestic issuance (€ m)
Algeria Egypt Palestine Israel Jordan
Domestic Not Not .2 Not
applicable applicable applicable
International Not Not ,.00 ,.40 Not
applicable available applicable
Total Not Not 1,365.00 1,842.68 Not
applicable available applicable
Table 2: International/Domestic debt outstanding (€ m)
As of .2.04, except for Egypt (0.0.04), Jordan (.0.0), Turkey
(.0.0), Palestinian National Authority (.09.0)
Algeria Egypt Palestine Israel Jordan
Domestic 0,2. ,9. 0.00 ,4. 2,2.20
International 2,4. 24,9.9 ,00. 2,.4 ,9.9
Total 22,820.53 82,395.71 1,060.81 91,752.18 8,085.39
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
Not 2,.0 Not ,9.2 Not
applicable applicable applicable
Not Not Not 00.00 Not
applicable applicable applicable applicable
Not 2,777.60 Not 1,969.12 Not
applicable applicable applicable
Lebanon Morocco Syria Tunisia Turkey
2,.00 20,94 Not available 4,24. 4,92.9
,4.9 0,2 ,44 ,0. ,.
26,338.39 31,051 Not available 12,797.72 202,348.47
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Targets, outstanding debt
Table 3: Securities/Loans outstanding (€ m)
As of .2.04, except for Egypt (0.0.04), Jordan (.0.0),
Turkey (.0.0), Palestinian National Authority (.09.0)
Algeria Egypt Palestine Israel Jordan
Government ,.4 ,.02 0.00 ,40.4 ,.29
Securities
Loans 4,2.90 44,0.9 ,00. 4,0. ,22.0
Total 22,820.53 82,395.71 1,060.81 91,752.18 8,085.39
Table 4: Domestic Government Debt Securities held by households/
foreign investors
As of .2.04, except for Egypt (0.0.04), Jordan (.0.0),
Turkey (.0.0), Palestinian National Authority (.09.0)
Algeria Egypt Palestine Israel Jordan
Households ,02.9 ,4.44 Not Not .
(€ m) applicable available
Households .9% 0% Not Not 0.02%
(percentage of applicable available
Total Domestic
Securities)
Foreign investors 0.00 Not Not 4.0 0.00
(€ m) available applicable
Foreign investors 0.00% Not Not 0.2% 0.00%
(percentage of available applicable
Total Domestic
Securities)
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
24,44.9 2,00 0.00 ,.2 2,2.2
2,9.0 9,9 Not available ,20.40 29,2.2
26,338.39 31,051 Not available 12,797.72 202,348.47
Lebanon Morocco Syria Tunisia Turkey
.2 Not Not 2,20.9 0,9.4
available available
4.9% Not Not 4.% 20.4%
available available
Not Not Not 0.2 2,9.
available available available
Not Not Not 0.00009% .9%
available available available
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Primary bond market information
Algeria Egypt Palestine Israel Jordan
Bond issues No Yes Not No No
underwritten? applicable
Are bonds Yes Yes Not Yes Yes
auctioned? applicable
Standard auction Yes Yes Not Yes Yes
procedure? applicable
Auction schedule? Yes Yes Not applicable Yes No
How much One week 0 days in Not 2 days in business day
notice of issue before auction advance applicable advance in advance
details?
Fax Reuters, official Not Bank of Israel Central Bank
Where are details newspapers applicable website, website and
published? and Central Reuters, Shva, memorandum
Bank website Kav-Manhe to banks
Yes Yes Not No No
applicable (planned for
Issues through 200)
established
group of banks?
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
No No Not No No
applicable
Yes Yes Not Yes Yes
applicable
Yes Yes Not Yes Yes
applicable
Yes Yes Not applicable Yes No
-2 days in 2 business Not Last Tuesday 2 business
advance days in applicable of month days in
advance advance
Reuters Press agencies, Not Reuters Treasury’s
website of applicable website and
Central Bank Reuters
and Reuters
No No Not Yes Yes, for
applicable reference
auctions in
which the
borrowing
amount is
announced in
advance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Primary bond market information
Algeria Egypt Palestine Israel Jordan
Restriction No Yes (0%) Not No Yes (0%)
upon maximum applicable
proportion?
Bonds sold No No Not No Yes
directly to applicable
investors?
If sold to Not Post/
investors, how? applicable Telephone
Are auctions No No Not Yes No
electronic? applicable
If yes, which Not Automatic
applicable Bank Services
system? (SHVA)
If no, how are Sealed Fax/Post Not Fax
envelopes to applicable
bids received? Central Bank
Non-competitive Yes Yes Not No Yes
bids allowed? applicable
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
No No Not No No
applicable
Yes No Not No Yes
applicable
Post Not Public offering,
applicable direct sale
No No (predicted Not No Yes
for 200) applicable
Not Electronic
applicable Fund Transfer
(EFT)
Hard copy Fax Not Post
applicable
Yes Yes Not Yes Yes
applicable
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
2 Short-Term Bill issue procedure
Algeria Egypt Palestine Israel Jordan
T-bill issues Yes Yes Not No No
underwritten? applicable
T-bills Yes Yes Not Yes Yes
auctioned? applicable
Standard auction Yes Yes Not Yes Yes
procedures? applicable
Auction Yes Yes Not Yes No
timetable applicable
published?
Sub- MoF and CB Not Monetary Open Market
Directorate applicable Department, Operations
for Domestic Bank of Israel and Public
Who organises Borrowings Debt
the auctions? Department,
CB
One week 0 days in Not Several days business day
How much before auction advance applicable in advance in advance
notice of details?
0 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
No No Not No No
applicable
Yes Yes Not Yes Yes
applicable
Yes Yes Not Yes Yes
applicable
Yes Yes Not Yes No
applicable
Financial Directorate of Not Directorate Domestic Debt
Operations the Treasury applicable General Management
Department, and External for Debt Department
CB Finances Management of Treasury
of MoF and Financial
Cooperation
at Ministry of
Finance
-2 days in 2 business Not Every Tuesday 2 business
advance days in applicable days in
advance advance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Short-Term Bill issue procedure
Algeria Egypt Palestine Israel Jordan
Fax Reuters, official Not Press and Memorandum
Where are details newspapers applicable communica- to banks and
published? and Central tions website
Bank website networks
T-bills issued Yes Yes Not No No
through group applicable
of banks?
T-Bills sold No No Not No Yes
directly to applicable
investors?
If sold to Not Post/
investors, how? applicable Telephone
Are auctions No No Not Yes No
electronic? applicable
If yes, which Not Automatic
applicable Bank Services
system? (SHVA)
If no, how are Sealed Fax/Post Not Fax
envelopes to applicable
bids received? Central Bank
Non-competitive Yes Yes Not Yes No
bids allowed? applicable
Are T-bills No No Not No No
issued for applicable
long-term debt
refinancing?
2 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
Reuters Press, Not Reuters Treasury’s
CB website, applicable website and
Reuters Reuters
No No Not Yes No
applicable
Yes No Not No Yes
applicable
Post Post Not TAP electronic
applicable system
No No (predicted Not No Yes
for 200) applicable
Not Electronic
applicable Fund Transfer
(EFT)
Hard copy Fax Not Post
applicable
Yes Yes Not Yes Yes
applicable
No No Not No Yes
applicable
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Secondary market liquidity
Algeria Egypt Palestine Israel Jordan
Who is Sub- MoF and CB Palestine MoF OMOPDD
responsible for Directorate Securities
for Domestic Market
liquidity? Borrowings
MoF No No No No No
intervention?
If MoF
intervention:
direct or
indirect?
Outright No No No No Yes
sales/purchases
T-bills?
Sell or Buy back No No No No Yes
operations?
Centralised Yes Yes No No No
quotation
system?
Inter-dealer Yes No No No
platform?
4 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
CB Primary Not applicable Primary CB and
dealers dealers Istanbul Stock
Exchange
No No Not applicable Yes Yes
Indirect Indirect
No No Not applicable Yes Yes
Yes No Not applicable Yes Yes
No Yes Not applicable Yes Yes
No No Not applicable Yes Yes
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Secondary market liquidity
Algeria Egypt Palestine Israel Jordan
Yes No No No
Daily quotation?
On-demand Not available Yes No Yes
quotation?
Public full open Yes No No No
book?
Directorate MoF, CB and MoF Jordan
General of Capital Market Securities
the Treasury Authority Commission
Ongoing
(Government and CB
reforms: securities
devising? market)
Directorate MoF, CB and MoF Jordan
General of Capital Market Securities
the Treasury Authority Commission
Ongoing
(Government and CB
reforms: securities
implementing? market)
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
Yes Yes Not applicable Yes No
Yes No Yes Yes
Yes No No No
CB Directorate of Prime Minister Directorate Treasury,
the Treasury (creation of General Central
and External a securities for Debt Bank, Stock
Finances at commission) Management Exchange and
MoF and and Financial Capital Market
primary Cooperation Board
dealers at Ministry of
Finance
CB Directorate of Directorate Treasury,
the Treasury General Central
and External for Debt Bank, Stock
Finances Management Exchange and
and Financial Capital Market
Cooperation Board
at Ministry of
Finance
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries
2 Accountability
Algeria Egypt Palestine Israel Jordan
Stock Market CB and Not Israeli Jordan
Transactions Capital Market applicable Securities Securities
Organisation Authority Authority, Commission
and and Capital
Financial market Supervision Markets,
regulator? Commission Insurance
and Savings
Division in the
Ministry of
Finance
Annual Debt Yes No Yes Yes Yes
Management
Accounts
published?
Treasury Mr Mohamed Mr Ibrahim Chief Treasury
Who is the Central Assaad, Head Albeltage Accountant Manager
Accounting of Public Debt of the
Accounting
Officer Management Accountant
Officer? Unit General’s
Office
Not MoF Palestinian State Parliament
applicable Legislative Comptroller
Council and
Ombudsman
Who scrutinises
accounts?
Annual Debt Yes No No Yes Yes
Management
Report
published?
Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
None. MoF Directorate Syrian Stocks Financial Capital Market
and the CB of the and Financial Market Board and
are only Treasury Markets Council Banking
supervisors and External Authority Regulation
Finances and
Supervision
Agency
Yes No No No Yes
Head of General Not available Treasurer “Sayman”,
Public Debt Treasury of General General
Department the Kingdom Directorate of
of Morocco Public Finance
Directorate Court of MoF Court of Court of
of Public Auditors Auditors Accounts
Accounting on behalf of
(MoF) and Parliament
Public Sector
Audit Board
(Prime
Minister’s
Office)
No Yes No Yes Yes
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
2 Trade, conventions, settlements
Algeria Egypt Palestine Israel Jordan
Banque Misr for Not Tel Aviv CB and Jordan
d’Algérie Clearing, applicable Clearing House Depositary
Settlement (TACH) Centre
and Central
Clearing and Depository
settlements (MCSD)
T+ T+ Not T+ T+2
applicable
Settlement date
Business day Algiers Cairo Not Jerusalem Amman
centre applicable
Payment Annual Semi-annual Not Annually Semi-annual
frequency of applicable
interest
Actual/ Actual/actual Not Actual/ 0/
applicable
Daycount
fraction
Annual Yield to Not IRR Yield to
maturity applicable maturity
(ISMA)
Yield method
90 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
CB Maroclear Not Société CB
applicable tunisienne
inter-
professionnelle
pour la
compensation
et le dépôt
des valeurs
mobilières
(STICODEVAM)
T+ T+ Not T+ (short- T+ /T+2
applicable term T-bills) /
T+ (fungible
T-bonds)
Beirut Casablanca Not Tunis Ankara
applicable
Semi-annual Annual Not Annual Semi-annual
applicable
Bills Actual/0 Not Actual/0 Actual/4
Actual/; maturity applicable
Notes: < year;
Actual/4 Actual/Actual
maturity
> year
IRR IRR Not Actuarial IRR
applicable (fungible
T-bonds) /
Proportional
(short-term
T-bills)
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
2 Trade, conventions, settlements
Algeria Egypt Palestine Israel Jordan
Platforms/ Over the Bonds market Not Stock Over the
counter (on the Stock applicable Exchange counter
markets where Exchange) and over the and Stock
bonds are traded counter Exchange
No No Not No Yes (inactive)
Repo market? applicable (planned for
200)
Not CB,
If so, who applicable commercial
participates? banks and big
companies
Average daily Not JOD
turnover volume applicable 0. million
92 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
Over the Over the Not Over the Over the
counter counter applicable counter counter and
Istanbul Stock
Exchange
Yes Yes Not Yes Yes
applicable
Commercial Depositories Not Central Bank CB and other
banks applicable and Treasury market
participants
LBP 0-00 MAD billion Not Not available 9 USD
billion applicable (200)
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
2 Islamic finance
Algeria Egypt Palestine Israel Jordan
Securities on No No No No No
Islamic basis?
94 Sovereign Debt Markets in the EU Mediterranean Partner Countries – 2005
2
Lebanon Morocco Syria Tunisia Turkey
No No No No No
2005 – Sovereign Debt Markets in the EU Mediterranean Partner Countries 9
Sovereign Debt Markets in the EU
Mediterranean Partner Countries
2005
EUROMED
@ EIB – EN – 11/2005 – QH-71-05-215-EN-C
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