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The Parliament approved the creation of the Debt Management Office

Today, on November 14th, the Parliament of Ukraine approved in the second reading and as a whole the draft law "On Amendments to the Budget Code of Ukraine" (registration number 2144), which also envisages the creation of the Debt Management Office. 282 Members of Parliament voted for the decision.

At the moment the Ministry of Finance of Ukraine is fully responsible for state and state-guaranteed debt management acting under current legislation and approved by the government Debt Management Strategy.  

The current model of debt management is viable, but its efficiency is limited by a need for time-consuming approvals of debt management decisions.

The transition to a new format for a public debt management model in Ukraine will allow achieving three goals at once. First, acting as a separate governmental institution, the Debt Management Office will not be dependent on political factors, which is important for enhancing investor confidence and predictability of public debt management processes in a long-term perspective.

Second, the institutional capacity of the Debt Management Office will allow using debt management instruments more effectively and comprehensively. As a result, the government's needs in financial resources will be managed on the most favorable terms for the country taking into account long-term risks.

Third, the Debt Management Office will be able to use advanced liquidity management tools using up-to-date market instruments. This, in turn, will avoid liquidity and solvency crises at the beginning of budget periods, ensuring the efficient use of temporarily free funds and generating additional budget revenues.

Upon the law enters into force, in terms of debt policy the Ministry of Finance will be responsible solely for defining the strategic goals for Debt Management Office in a Debt Management Strategy.