Transcript Specific Aspects of Public Debt Management in Austria

Specific Aspects of Public Debt Management
in Austria
Overview Austrian Debt
S. 2
Austria still with AAA-rating
- 205 billion EUR total debt (72,3 % of GDP) in 2010
(184 billion EUR, 67,1 % of GDP in 2009)
- financial debt 187 billion EUR in 2010 (178 in 2009)
- interest 2010: 9,9 billion EUR (including SWAPS)
- balance of current accounts 2010: surplus of 3,2 % of GDP
(+ 2,3 % in 2009)
Long-term sustainability threatened
S. 3
But: first time since 1996 cashflow negative
- federal government in 2009 cashflow negative with 5,3 billion EUR;
in 2010 reduced to -3,1 billion EUR
- first time since 1996
- meaning: just to support current expenses including interest payments Austria
has to add new debt in such a year
--> consolidation necessary
Financial crisis
S. 4
Expenses or revenues for the taxpayers ?
-100 billion EUR rescue package (2008)
- reduced to 65 billion EUR in 2010 and 15 billion in 2011
- 7,5 billion EUR preferred shares in banks (capital injections)
- 22 billion EUR state guarantees
--> still too early to know the total costs of the rescue package
(even a small revenue is still possible)
Total guarantees
S. 5
+10,6 % due to financial crisis in 2009
• guarantees 2008: 113 billion EUR
• guarantees 2009: 124 billion EUR
+10,6 % in federal guarantees
guarantees 2010: 129 billion EUR (+3,7 %)
Debt composition
S. 6
Austrian debt with low FX-risk
- 97 % in EUR, 3 % in FX (2009)
- aggregated maturity 4,8 years (2010)
 low FX-risk, low roll-over-risk
Risk management
S. 7
Luckily there was a steep learning curve of ÖBFA
after a paradigmatic audit (see WGPD-homepage) in 2009:
-introduction of new limit systems for ÖBFA (maximum liquidity,
maximum cost of carry)
- purchases of SIV‘s were generally banned
- the minister of finance led an expert group which drafted
new risk guidelines:
- introduction of stress tests
- new watchlist (CDS-Spreads of counterparties)
European Stability Mechanism (ESM)
S. 8
Austria participates in ESM
- effective lending capacity of 500 billion EUR in discussion
- Permanent stability mechanism after June 2013 (before EFSM/
European Financial Stabilisation Mechanism)
- initial capital stock of „500 billion EUR plus buffer“ planned
- smaller part paid-in shares, the rest in callable shares
- discussions concerning auditing rights for NAOs and ECA
S. 9
Thank you very much for your
attention!