Appendix 5 The Stock of Commonwealth Government Securities on Issue
Contents
Tables
Table 1: Government Securities on Issue at 30 June 1999
Table 2: Government Securities on Issue at 30 June 1990 to 1999
Table 5: Composition of the Commonwealth’s Foreign Currency Liabilities at 30 June 1999
Table 6: Composition of Swaps Portfolio at 30 June 1999
Table 7: Change during 1998-99 in Government Securities on Issue
Table 10: Government Securities on Issue at 30 June 1999 (Australian Dollar Denominated)
Table 11: Government Securities on Issue at 30 June 1999 (Foreign Currency Denominated)
The securities listed in this appendix are for the most part Commonwealth securities issued for and on behalf of the Commonwealth, State and Territory Governments, although a few State securities (mostly issued prior to the Financial Agreement) are still outstanding. Virtually all outstanding foreign currency debt is held on account of the Commonwealth (the exception being a small amount of Sterling debt held on account of the States). Aggregate details for the States and Territories are provided, with separate details for each of the States and the Northern Territory being provided in Appendix 7.
At the end of each financial year, the Commonwealth issues, as necessary, Internal Treasury Bills (ITB) to itself to enable a transfer of monies between Funds within the Commonwealth Public Account. These Bills are redeemed shortly after the start of the new financial year. Internal Treasury Bills amounting to $18,935 million were on issue at 30 June 1999. Because such Bills are not in any sense a Commonwealth liability, their inclusion in liability measures would be misleading. For this reason, they have been excluded from the data presented in a number of tables in this appendix.
Commonwealth Government securities held by the Loan Consolidation and Investment Reserve (LCIR) do not constitute a liability for the Commonwealth and, as such, have been excluded from the data presented in this appendix where indicated. A discussion of the role of the LCIR in the Commonwealth’s debt management operations is provided in Appendix 8.
With a few exceptions (for example, Income Equalisation Deposits and some bank loans raised overseas by the Commonwealth), forms of indebtedness not evidenced by the issue of securities are not included and debt of semi-government and local authorities of the Commonwealth and the debt of other bodies guaranteed by the Commonwealth is excluded.
Commonwealth securities held by the RBA or as investments by the Commonwealth, the States or the Territories would be deducted in any calculation of ‘net public debt’, but are included in this document except where otherwise indicated.
Apart from differences in coverage mentioned above, the figures contained in this appendix cannot be used to derive borrowings or net borrowings. All the figures are expressed in nominal or ‘face value’ terms, whereas some securities are originally issued, or ultimately redeemed or repurchased, at prices different from their face value. The details of changes in Government securities on issue given in Table 7, therefore, do not correspond exactly with those included in statements of Loan Fund receipts and payments. These are expressed in cash terms (that is, they show actual cash incomings and outgoings as a result of loan raisings and redemptions during the financial year) whereas Table 7 shows face value changes only.
The Australian currency equivalent is shown of securities repayable in foreign currencies and of the interest liability on these securities. For conversion purposes, the rate for the $A against the $US for the last working day of the financial year, as published by the RBA, has been used. This rate is based upon an average of market rates. Rates for other foreign currencies have been derived by crossing the $A/$US rate with market rates for those currencies on the same day, see below.
While this is a convenient method of showing in a common currency the amounts involved, the cost in Australian currency of meeting the various obligations will differ from that shown to the extent that there is any change in the relevant exchange rates between 30 June 1999 and the dates on which the obligations are paid.
The rates of exchange to the Australian dollar at 30 June 1998 and at 30 June 1999, are as follows:
|
At 30 June 1998 |
At 30 June 1999 |
|
|
Sterling |
0.3681 |
0.4188 |
|
United States Dollar |
0.6135 |
0.6596 |
|
Deutsche Mark |
1.1096 |
1.2476 |
|
Swiss Franc |
0.9341 |
1.0219 |
|
Netherlands Guilder |
1.2515 |
1.4057 |
|
Japanese Yen |
86.16 |
79.66 |
|
Hong Kong Dollar |
4.7538 |
5.1176 |
Table 1: Government Securities on Issue at 30 June 1999
(a) Net of LCIR holdings.
(b) Income Equalisation Deposits, overdue securities and loans acquired from the Federal Airports Corporation and Australian National Railways.
(c) Comprises Treasury Fixed Coupon Bonds $3 976 620 148 and Internal Treasury Bills $18 935 000 000.
(d) The Australian dollar equivalent of securities denominated in foreign currencies has been calculated in this table at the rate of exchange ruling at 30 June 1999. This is a convenient method of showing the total amount in one common currency, but the cost in Australian dollars of meeting these repayments in due course will be different from the amounts shown, reflecting exchange rates prevailing when the payments are made. Exchange rates as defined in the introduction to this Appendix.
Table 2: Government Securities on Issue at 30 June 1990 to 1999
(a) Net of holdings of the LCIR.
(b) Loans taken over from the former Canberra Commercial Development Authority, the Pipeline Authority, Federal Airports Corporation and Australian National Railways.
(c) Australian dollar equivalent at 30 June.
(d) Acquired by the LCIR as an investment, since the loan documentation precludes early redemption.
(e) Net of Internal Treasury Bills and other holdings of the LCIR.
r revised
Table 2: Government Securities on Issue at 30 June 1990 to 1999 — continued
(a) Australian dollar equivalent at 30 June.
(b) Net of Internal Treasury Bills and other holdings of the LCIR.
Table 3: Government Securities Denominated in Australian Dollars on Issue, Classified by Holder at 30 June 1996 to 1999
(a) Includes Treasury Fixed Coupon Bonds, Treasury Adjustable Rate Bonds and Treasury Indexed Bonds.
(b) In addition, other elements of the Reserved Money Fund have minor holdings.
(c) Australian Bureau of Statistics data, Catalogue Nos. 5302.0 and 5232.0.
(d) As at end March 1999.
(e) Excludes Federal Airports Corporation and Australian National Railways loans assumed by the Commonwealth.
r revised
Table 4: Government Securities on Issue, Australian Dollar and Foreign Currency Denominated, as a Percentage of GDP from 1990 to 1999(a)
(a) As at 30 June.
(b) Excludes ITB and other liabilities held by the LCIR.
(c) Converted to Australian dollars at the rates of exchange ruling on the dates indicated.
(d) Excludes liabilities held by the LCIR.
Table 5: Composition of the Commonwealth’s Foreign Currency Liabilities at 30 June 1999(a)(b)
(a) Face value, converted to Australian dollars at the exchange rates in the introduction to this Appendix.
(b) Excludes LCIR holdings and overdue stocks.
Table 6: Composition of Swaps Portfolio at 30 June 1999
Interest Rate Swaps
|
Number of |
Currency |
Notional Principal |
Interest |
Frequency |
Interest |
Frequency |
Remaining Life of |
|
Commonwealth Receives |
Commonwealth Pays |
||||||
|
1 |
Australian Dollar |
100.0 |
Floating |
Semi-Annual |
Floating |
Quarterly |
0.4 |
|
3 |
Australian Dollar |
1 500.0 |
Fixed |
Quarterly |
Floating |
Quarterly |
1.5 |
|
116 |
Australian Dollar |
15 325.0 |
Fixed |
Semi-Annual |
Floating |
Semi-Annual |
6.3 |
Cross Currency Interest Rate Swaps
|
Number of |
Currency |
Notional |
Interest |
Frequency |
Currency |
Notional |
Interest |
Frequency |
Remaining Life |
|
Commonwealth Receives |
Commonwealth Pays |
||||||||
|
1 |
Australian Dollar |
100.0 |
Fixed |
Semi-Annual |
United States Dollar |
79.6 |
Fixed |
Annual |
2.3 |
|
20 |
Australian Dollar |
2 029.0 |
Fixed |
Semi-Annual |
United States Dollar |
1 491.2 |
Fixed |
Semi-Annual |
5.7 |
|
54 |
Australian Dollar |
6 651.9 |
Fixed |
Semi-Annual |
United States Dollar |
4 953.1 |
Floating |
Semi-Annual |
3.9 |
|
5 |
Australian Dollar |
500.0 |
Floating |
Semi-Annual |
United States Dollar |
395.5 |
Fixed |
Semi-Annual |
1.6 |
|
5 |
Australian Dollar |
600.0 |
Floating |
Semi-Annual |
United States Dollar |
478.1 |
Floating |
Semi-Annual |
2.0 |
|
1 |
Australian Dollar |
100.0 |
Floating |
Quarterly |
United States Dollar |
69.0 |
Floating |
Semi-Annual |
0.4 |
|
1 |
Netherlands Guilder |
25.0 |
Fixed |
Annual |
United States Dollar |
13.8 |
Floating |
Semi-Annual |
0.5 |
|
1 |
United States Dollar |
200.0 |
Fixed |
Annual |
Australian Dollar |
302.6 |
Fixed |
Semi-Annual |
4.4 |
(a) Weighted average remaining life of swaps at 30 June 1999.
Table 7: Change during 1998-99 in Government Securities on Issue
A - Securities Payable in Australian Dollars (Face Value)
(a) Redeemed from Loan Fund except for Income Equalisation Deposits (IED) which were redeemed from the IED Trust Account and redemptions from the Consolidated Revenue Fund of loans taken over from the Pipeline Authority and Australian National Railways.
(b) Net movement.
(c) Peace Savings Certificates, loans taken over from the Pipeline Authority, Federal Airports Corporation and Australian National Railways.
(d) Securities assumed from the Australian National Railways.
r revised.
Table 7: Change during 1998-99 in Government Securities on Issue — continued
B - Securities Repayable in Foreign Currencies (Face value in Foreign Currency)
(a) From Consolidated Revenue Fund.
(b) Includes NLG 22 565 000 of stock held as an investment of the LCIR.
Table 7: Change during 1998-99 in Government Securities on Issue — continued
C - Securities Repayable in Foreign Currencies (Australian Dollar Equivalent) (a)
(a) Converted to Australian dollars at exchange rates shown in the introduction to this Appendix.
(b) From Consolidated Revenue Fund.
(c) Includes $A18 030 364 of stock held as an investment of the LCIR.
Table 8: Principal Contractual Obligations of the Commonwealth, State and Northern Territory Governments on Australian Dollar Denominated Debt at 30 June 1999 (a)
(a) Repayments of principal amounts. Excludes Treasury Notes and ITB.
(b) Income Equalisation Deposits and Peace Savings Certificates for the Commonwealth, Tax Free Stock for the States.
Table 9: Principal Contractual Obligations of the Commonwealth and State Governments on Foreign Currency Denominated Debt at 30 June 1999 (a)(b)
(a) Repayments of principal amounts. All obligations in the table are of the Commonwealth; £ 503 535 ($A1 202 327) is on issue on behalf of South Australia and matures at the Treasurer’s option.
(b) The Australian dollar equivalent of foreign currency debt obligations has been calculated at the rate of exchange shown in the introduction to this Appendix.
(c) Includes Qantas and Federal Airports Corporation liabilities assumed by the Commonwealth in 1992-93 and 1996-97 respectively.
(d) Qantas liabilities assumed by the Commonwealth in 1992-93.
Table 10: Government Securities on Issue at 30 June 1999 (Australian Dollar Denominated)
Table 10: Government Securities on Issue at 30 June 1999 (Australian Dollar Denominated) — continued
* Subject to rebate under Section 160A of the Income Tax Assessment Act 1936.
Table 10: Government Securities on Issue at 30 June 1999 (Australian Dollar Denominated) — continued
(a) All on issue for the Commonwealth.
Table 10: Government Securities on Issue at 30 June 1999 (Australian Dollar Denominated) — continued
(a) Repayable at the request of the depositor at any time after the expiration of 12 months from the date on which the deposit was lodged.
(b) See Appendix 7, Tables 10 and 13 for years of maturity.
(c) Up to 7 days notice.
(d) Particulars of yields on issues during 1998-99 are set out in Appendix 4, Table 4.
(e) Treasury Notes are issued for periods of 5, 13 and 26 weeks.
(f) Internal Treasury Bills are issued by the Commonwealth as security for the investment of cash of the Reserved Money Fund, enabling a transfer of monies between the Commonwealth’s Funds so that the required balancing at 30 June is achieved.
(g) Liabilities assumed by the Commonwealth.
(h) Includes $100 million Euro-$A loan.
Table 11: Government Securities on Issue at 30 June 1999 (Foreign Currency Denominated)
Table 11: Government Securities on Issue at 30 June 1999 (Foreign Currency Denominated) — continued
(a) All securities on issue for the Commonwealth except where indicated.
(b) Elapsed bonds reclaimed from fiscal agent.
(c) On behalf of South Australia.
(d) On behalf of New South Wales.
(e) Raised in Europe.
(f) Qantas liabilities assumed by the Commonwealth.
(g) Federal Airports Corporation liability assumed by the Commonwealth.
(h) Repayable by yearly instalments over the period indicated.
(i) The Commonwealth holds f’000 29 498 of these issues as an investment of the Loan Consolidation and Investment Reserve. Amounts are respectively f’000 15 641 and 13 857.