New Zealand Debt Management Office (NZDMO) for the year ended 30 June 2007
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Nature and extent of ActivitiesAssets and LiabilitiesRevenues and Expenses |
NZDMO is an operating unit of the Treasury. NZDMO is responsible for managing the Crown’s debt, overall cash flows and interest-bearing deposits. To facilitate a greater level of transparency regarding NZDMO operations as distinct from other entities, a separate section on NZDMO is provided in the Treasury Annual Report.
The following supplementary financial schedules reflect the activity of NZDMO as though it were a stand-alone entity. Cross-holdings or other financial positions between NZDMO and other government entities are not eliminated.
NZDMO managed $17,136 million of assets, $36,244 million of liabilities, $1,234 million of revenue and $2,445 million of expenses on behalf of the Crown for the year ended 30 June 2007.
Further information on NZDMO’s performance in managing the Crown’s sovereign-issued debt and related financial assets is provided in the Debt and Related Financial Asset Management output performance section of this report on pages 26 and 27.
The financial information reported in these schedules is consolidated into the Crown financial statements. Readers should refer to the Crown financial statements for the year ended 30 June 2007.
Nature and Extent of Activities
NZDMO, established in 1988, is part of the New Zealand Treasury and is responsible for the efficient management of the Crown’s debt and associated assets within an appropriate risk management framework. NZDMO’s strategic objective is to maximise the long-term economic return on the Crown’s financial assets and debt in the context of the Government’s fiscal strategy, particularly its aversion to risk. NZDMO’s major responsibilities involve:
- financing the Crown’s gross borrowing requirement, managing foreign-currency assets required to meet net foreign-currency interest and principal payments, and settling and accounting for all related debt transactions
- maintaining and developing an appropriate framework for efficiently managing the portfolio and the risks associated with it
- disbursing cash to departments and facilitating departmental cash management
- advancing funds to government entities in accordance with Government policy
- providing capital markets services and derivative transactions for departments and government entities
- providing reporting for fiscal forecasting and financial statements
- maintaining a diversified funding base and, where appropriate, enhancing relationships with investors who hold, or are potential holders of, New Zealand government securities and with financial intermediaries and the international credit rating agencies.
