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Budget 2010 Home Page Budget Economic and Fiscal Update 2010

Forecast Statement of Borrowings as at 30 June

Forecast Statement of Borrowings as at 30 June
2009
Actual
$m 		2010
Previous
Budget
$m 		2010
Forecast
$m 		2011
Forecast
$m 		2012
Forecast
$m 		2013
Forecast
$m 		2014
Forecast
$m

Borrowings

Government stock 21,164 25,629 28,881 41,328 43,616 45,233 50,720
Treasury bills 7,432 9,550 9,043 9,509 9,493 9,490 9,483
Government retail stock 491 581 337 337 337 337 337
Settlement deposits with Reserve Bank 6,908 9,432 7,602 7,602 7,602 7,602 7,602
Derivatives in loss 2,158 3,237 1,798 1,369 1,303 1,162 1,091
Finance lease liabilities 1,002 1,247 1,000 1,037 1,294 1,190 1,438
Other borrowings 22,798 26,747 24,982 28,234 31,140 31,420 31,725
Total borrowings 61,953 76,423 73,643 89,416 94,785 96,434 102,396
Total sovereign-guaranteed debt 44,448 58,076 52,833 65,890 68,324 69,927 75,627
Total non sovereign-guaranteed debt 17,505 18,347 20,810 23,526 26,461 26,507 26,769
Total borrowings 61,953 76,423 73,643 89,416 94,785 96,434 102,396

Net debt:

Core Crown borrowings1 50,545 64,116 59,935 73,196 75,948 77,863 83,990
Add back NZS Fund holdings of sovereign-issued debt and
NZS Fund borrowings		 428 (559) 71 (31) (21) (22) (16)
Gross sovereign-issued debt2 50,973 63,557 60,006 73,165 75,927 77,841 83,974
Less core Crown financial assets3 55,769 61,467 59,584 61,317 55,891 52,105 54,112
Net core Crown debt (incl. NZS Fund)4 (4,796) 2,090 422 11,848 20,036 25,736 29,862
Add back NZS Fund holdings of core Crown financial assets
and NZS Fund financial assets5		 11,486 13,258 15,250 16,575 17,741 19,087 20,477
Net core Crown debt (excl. NZS Fund)4 6,690 15,348 15,672 28,423 37,777 44,823 50,339
Advances 10,429 11,971 10,970 11,542 11,861 12,231 12,675
Net core Crown debt (excl. NZS Fund and advances)6 17,119 27,319 26,642 39,965 49,638 57,054 63,014

Gross debt:

Gross sovereign-issued debt2 50,973 63,557 60,006 73,165 75,927 77,841 83,974
Less Reserve Bank settlement cash and bank bills (9,217) (14,184) (7,796) (7,796) (7,796) (7,796) (7,796)
Add back changes to DMO borrowing due to settlement cash7 1,600 1,600 1,600 1,600 1,600 1,600 1,600
Gross sovereign-issued debt excluding Reserve Bank settlement
cash and bank bills4 		43,356 50,973 53,810 66,969 69,731 71,645 77,778

Notes on Borrowings

Total Borrowings can be split into sovereign-guaranteed and non-sovereign-guaranteed debt. This split reflects the fact that borrowings by State-owned enterprises and Crown entities are not explicitly guaranteed by the Crown. Sovereign-guaranteed debt excludes Kiwibank deposits guaranteed under the retail deposit guarantee scheme. No other debt of State-owned enterprises and Crown entities is currently guaranteed by the Crown.

  1. Core Crown borrowings in this instance includes unsettled purchases of securities (classified as accounts payable in the statement of financial position).
  2. Gross sovereign-issued debt (GSID) represents debt issued by the sovereign (the core Crown) and includes Government stock held by the New Zealand Superannuation Fund (NZS Fund), ACC and EQC.
  3. Core Crown financial assets exclude receivables.
  4. Net core Crown debt represents GSID less financial assets. This can provide information about the sustainability of the Government's accounts, and is used by some international agencies when determining the credit-worthiness of a country.
  5. Adding back the NZS Fund assets provides the financial liabilities less financial assets of the core Crown, excluding those assets set aside to meet part of the future cost of New Zealand superannuation.
  6. Net core Crown debt (excluding NZS Fund and advances) excludes financial assets which are held for public policy rather than treasury management purposes.
  7. The Reserve Bank has used $1.6 billion of settlement cash to purchase reserves that were to have been funded by the NZ Debt Management Office borrowing. Therefore, the impact of settlement cash on GSID is adjusted by this amount.

The accompanying Notes and Accounting policies are an integral part of these Statements.

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