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New Zealand Economic and Financial Overview 2010

Summary of Direct Public Debt

Funded and Floating Debt

The following table sets out the direct funded and floating debt of the government on the dates indicated. Funded debt is indebtedness with an original maturity of one year or more and floating debt is indebtedness with an original maturity of less than one year. Funded debt, and therefore total direct debt, includes swap transactions.

Total direct debt includes a net swap payable ($339.3 million at June 2009) with offsetting impacts on internal and external funded debt. Swap transactions, which are included in almost all the following public debt tables, increase external funded debt and reduce internal funded debt in 2008.

Funded and Floating Debt
  (dollar amounts in millions)
As at 30 June
  2005 2006 2007 2008 2009

Funded Debt(1)

         
   Internal (2) 26,555.3 25,346.9 26,860.4 28,210.4 29,614.5
   External (3)(4) 3,536.4 5,116.4 2,048.0 2,048.5 4,025.7

Floating Debt

         
   Internal Debt (5) 5,595.0 5,057.0 2,303.4 1,655.0 7,505.0
   External Debt (3)(6) 394.9 - - - 153.0
TOTAL DIRECT DEBT 36,081.6 35,520.3 31,211.4 31,913.9 41,298.2
TOTAL PUBLIC DEBT AS A % OF GDP(7) 23.9% 22.7% 18.9% 17.7% 23.1%

(1) Includes the effect of swap transactions. Excludes indebtedness to international financial organisations arising from membership.

(2) Includes Government Wholesale Bonds, Kiwi Bonds, Index-Linked Bonds.

(3) External debt is converted at the mid-point of the 3.00 pm spot rate on 30 June for each year.

(4) Includes Public Bonds, Private Placements, Syndicated Loans, and Medium Term Notes.

(5) Treasury Bills and Reserve Bank Bills.

(6) Includes Sovereign Notes and Euro-Commercial Paper.

(7) GDP: Treasury Estimate for June years.

Direct Public Debt by Currency of Payment

As part of its debt management activities, the government enters into currency swap arrangements which have the effect of converting to a different currency principal obligations on New Zealand's external debt.

The following table shows the direct public debt of New Zealand at 30 June 2009 by currency of payment after swap positions are taken into account and shows the estimated interest for the year ending 30 June 2010, including swap positions.

Direct Public Debt by Currency of Payment

 

(dollar amounts in millions)
  Amount outstanding
at 30 June 2009(1)
Estimated interest for the
year to 30 June 2010(2)
External Debt    
   Repayable in United States Dollars 1,424.8 34.8
   Repayable in Japanese Yen 319.0 0.2
   Repayable in Pounds Sterling 12.3 (0.1)
   Repayable in Euro 0.0 23.9
   Repayable in Other Currencies 0.0 21.7
Internal Debt     39,202.8 1,838.3
Subtotal 40,958.9 1,918.8
Swaps 339.3 -
TOTAL DIRECT PUBLIC DEBT 41,298.2 -

(1) Converted at the midpoint of the 3.00 pm spot exchange rates on 30 June 2009 which were: NZD 1 = US$0.6537 = Yen 62.69 = Pounds 0.3927 = Aus$0.8054 = Euro 0.4628.

(2) In some cases, interest payments are offset by interest receipts.

Details of External Public Debt at 30 June 2009(1)

The following table sets out by currency the estimated payments of principal, including mandatory amortisation provisions, to be made on the external direct public debt of New Zealand as at 30 June 2008, shown in New Zealand dollars based on rates of exchange on that date and with adjustment to reflect the effect of currency swap arrangements.

Details of External Public Debt at 30 June 2009
  (dollar amounts in millions)
Maturing in year ended 30 June 2010 2011 2012 2013 2014 2015 2016 - 2019 2020+ Total
United States dollar 1,168 62 153 -13 93 252 705 0 2,420
Japanese Yen 43 0 159 160 0 0 0 0 362
British pounds 0 0 0 0 0 12 0 0 12
Euro 0 0 245 184 0 302 504 0 1,235
Australian dollars 19 0 94 37 0 0 0 0 150
TOTAL EXTERNAL DEBT 1,230 62 651 368 93 566 1,209 0 4,179
Percentage of Total Foreign Debt 29.5% 1.5% 15.6% 8.8% 2.2% 13.5% 28.9% 0.0% 100 %

(1) Includes Sovereign Note Programme (notes not exceeding 270 days to maturity) and Euro-Commercial Paper Programme (notes not exceeding 365 days to maturity).

Interest and Principal Requirements

For the year ended 30 June 2009, the total payment of interest on public debt of the government was $1,917 million. The following table indicates the movements in external interest-bearing public debt since 2000, excluding swap positions.

Interest and Principal Requirements
  (dollar amounts in millions)
  External Debt(1) Interest Charges
  Amount (2) As % of
Total Public
Debt
Amount As % of
Exports (3)
30 June 2000 6,633.2 17.7 413.9 1.2
30 June 2001 6,022.8 15.7 404.5 0.9
30 June 2002 4,733.5 12.4 311.4 0.7
30 June 2003 4,523.0 11.8 216.6 0.5
30 June 2004 3,728.9 10.1 191.8 0.5
30 June 2005 2,709.0 7.5 167.6 0.4
30 June 2006 1,866.2 5.3 122.4 0.3
30 June 2007 1,638.2 5.2 88.8 0.2
30 June 2008 657.4 2.1 69.0 0.1
30 June 2009 1,756.1 4.3 48.1 0.1

(1) Excludes non-interest-bearing indebtedness to international organisations.

(2) External debt is converted at the midpoint of the 3.00 pm spot exchange rate on 30 June in each case.

(3) Based on exports of goods and services for each year.

Maturity Profile of Direct Public Debt

The following table sets forth the maturity dates of New Zealand public debt outstanding as at 30 June 2009, including the effect of swap positions.

Maturity Profile of Direct Public Debt
  (dollar amounts in millions)
Loans Maturing in Year Ending 30 June(1) External(2) Internal Total Debt
2010 1,076.6 5,642.6 6,719.2
2011 62.2 7.0 69.2
2012 651.3 5,765.3 6,416.6
2013 368.1 5,201.7 5,569.8
2014 92.4 (72.4) 20.0
2015 566.0 3,916.7 4,482.7
2016 to 30 June 2019 1,209.1 7,738.2 8,947.3
After 30 June 2019 0.0 928.0 928.0
Treasury Bills - 7,505.0 7,505.0
Other 153.0 487.4(3) 640.4
TOTAL 4,178.7 37,119.5 41,298.2

(1) With respect to many of the loans, the Government has the option to redeem the securities at an earlier date.

(2) Converted at the mid-point of the 3.00 pm spot exchange rate on 30 June 2009.

(3) Retail Stock.

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