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Management of refinancing risk

Refinancing risk is the risk that debt will have to be refinanced at an unusually high cost or, in extreme cases, cannot be refinanced at all.

  • For managing refinancing risk, outstanding short-term debt (maturity under 1 year) cannot exceed 25% of the State’s budgeted expenditures (total of costs and investments).
  • The repayments of long-term debt obligations (final maturity greater than 1 year) in a year should be spread out so that the annual repayments of debt are not more than 5% of the forecasted GDP each year.

Graph: Duration and average term to maturity of the outstanding debt
* Data from 30.06.2019                                                                                                              

Table: The main risk characteristics of the Liquidity Reserve, the Stabilisation Reserve Fund and the outstanding debt

 

Debt Portfolio

Liquidity Reserve

Stabilisation Reserve Fund

 

31.12.18

30.06.19

31.12.18

30.06.19

31.12.18

30.06.19

Amount

454 million

833 million

677 million

677 million

412 million

415 million

Modified duration

0.10 years

0.23 years

0.27 years

0.11 years

0.90 years

0.83 years

Average term to maturity

3.2 years

3.9 years

 

 

 

 

Currency

100% EUR

100% EUR

100% EUR

100% EUR

100% EUR

100% EUR

Composition

Two floating rate loans

Two floating rate loans and two Treasury bills

31% bonds and 69% cash

20% bonds and 80% cash

99,9% bonds and 0,1% cash and deposits

99% bonds and 1% cash

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Last updated: 1 August 2019