Working group recommends organisational reform of government debt management

The working group assessing development needs in government debt management in Finland proposes that debt management and the management of government transactions be transferred to a separate debt office.

The amount of central government debt in Finland has doubled since the financial crisis, at a time when there has also been a doubling of the government’s implicit liabilities. The euro-denominated risks associated with government debt servicing have therefore also grown. The operational risks in debt management have increased because computer systems have become more vulnerable.

The working group concludes that a reorganisation of government debt management is required as a result of these changes.

The working group recommends that debt management and the management of government transactions be transferred to a separate debt office. Such an office could operate as a separate government agency or as a separate unit within the Ministry of Finance.

Ministry to examine this further

The Ministry of Finance will set up an internal working group to assess possible further measures.

“The State Treasury has performed its debt management role well. The recommendations of the debt management working group provide a good foundation for further work. Our internal working group will assess the results from different perspectives and propose any further measures it considers necessary,” says Permanent Under-Secretary Päivi Nerg.

Working group memorandum (in Finnish with an English summary)
Working group to assess government debt management (Press release 12 May 2017, in Finnish)

Inquiries:

Antti Suvanto, PhD (Soc Sc), chair of working group, tel. +358 50 552 1511
Päivi Nerg, Permanent Under-Secretary (further work at Ministry of Finance), tel. +358 2955 30149, paivi.nerg(at)vm.fi