1.3 Objetivos
2.2.2 Secciones de la NIIF para PYMES
2.2.2.17 Sección No 17 Propiedades, Planta y Equipo
Creditor,
MINECOFIN Extensive pre-consultations to agree thereorganisation terms and conditions. Inputs:Pre-consultation Outputs: Reorganization proposal Front Office External Finance Resource Mobilization Officer
Prepare draft loan reorganisation concept paper with indicative reorganisation loan terms and conditions to send to Debt Management Committee or Minister of Finance for approval.
Inputs:
Reorganization proposal Outputs:
Draft reorganization concept paper
Head of External Sign-off draft reorganization concept paper. Inputs:
Finance paper Outputs:
Signed-off reorganization concept paper
Chief Economist Authorize reorganization concept paper. Submit to Debt Management Committee or Minister of Finance for approval.
Inputs: Signed-off reorganization concept paper Outputs: Authorized reorganization concept paper Debt Management Committee or Minister of Finance
Approve reorganization concept paper. Inputs:
Reorganization concept paper Outputs: Approved reorganization concept paper Head of External Finance and Permanent Secretary
Participate in negotiations with the line ministry, funding agency along with Ministry of Foreign Affairs where necessary, and other government agencies.
Negotiate terms and conditions of the new loan.
Inputs:
Approved reorganization concept paper
Outputs:
Negotiated new loan terms and conditions
Middle Office Legal Officer and/or
Ministry of Justice
Negotiate and finalize legal documentation throughout the negotiation process.
Obtain legal opinion on the loan from Ministry of Justice to ensure that covenants and other conditions are met.
Prepare loan agent’s warrant/power of attorney (if Minister of Finance cannot sign)
Inputs:
Negotiated new loan terms and conditions
Outputs:
Legal documentation Legal opinion
Loan agent’s warrant/ power of attorney Front Office External Finance Resource Mobilization Officer
Finalize loan terms and conditions and
conclude the new loan agreement. Inputs:Legal documentation Legal opinion
Loan agent’s warrant/ power of attorney
Outputs:
Draft new loan agreement Loan agent’s warrant/ power of attorney
Head of External
Finance Sign-off new loan agreement. Inputs:Draft new loan agreement Loan agent’s warrant/ power of attorney
Public Debt Management Manual: Procedures Page 14-3
Signed-off new loan agreement
Loan agent’s warrant/ power of attorney
Chief Economist Authorize new loan agreement.
Submit to Minister of Finance for signing.
Inputs:
Signed-off new loan agreement
Loan agent’s warrant/ power of attorney
Outputs:
Authorized new loan agreement
Loan agent’s warrant/ power of attorney
Minister of Finance or Loan Agent
Sign loan agreement or sign loan agent’s warrant/power of attorney with the authority to sign on behalf of the Minister of Finance. Loan Agent to sign on behalf of the Minister of Finance
Inputs:
Loan agreement
Loan agent’s warrant/ power of attorney
Outputs:
Signed loan agreement Front Office
External Finance Resource
Mobilization Officer
Prepare press statement (if needed). Inputs:
Signed loan agreement Outputs:
Draft press statement Chief Economist Approve press statement.
Send copy of press statement to Minister of Finance’s office for release.
Inputs:
Draft press statement Outputs:
Press statement released Front Office
External Finance Resource
Mobilization Officer
Obtain copies of the loan agreement from the Minister of Finance or Permanent Secretary’s office and send a copy to back office for input to debt recording system and processing.
Send copy of the loan agreement to the Deputy Accountant General, BNR, Ministry of Justice and project agency.
Inputs:
Signed loan agreement Outputs:
Signed loan agreement sent to back office
Signed loan agreement sent to Treasury, BNR, Ministry of Justice and project agency Project Agency,
Line Ministry and/or MINECOFIN
Ensure that the conditions precedent and
effectiveness of the loan are met. Inputs:Signed loan agreement Outputs:
Effectiveness of the loan Back Office
DMFAS Specialist Obtain loan agreement from front office orPermanent Secretary’s office. Input loan details into DMFAS, using the
Inputs:
Loan agreement Outputs:
User Manual if needed Updated DMFAS Head of Back
Office or Senior DMFAS Specialist
Check debt reorganisation data entered into
DMFAS. Inputs:Loan agreement
Updated DMFAS Outputs:
Check of updated DMFAS
Public Debt Management Manual: Procedures Page 14-5
14.0: Debt Reorganization Loans
External Entities and/or Approvals Back Office Middle Office Front Office Resource Mobilization Officer Prepare Draft Reorganisation Concept Paper Chief Economist Authorise Draft Reorganization Concept Paper Debt Management Committee or Minister of Finance Approve Reorganization Concept Paper Legal Officer / Ministry of Justice Negotiate & Finalize Legal Documentation Head of External Finance Sign-off Draft Reorganization Concept Paper
Head of External Finance
Approve Term Sheet & Press Statement Chief Economist Authorize New Loan Agreement Permanent Secretary / Head of External Finance Participate in Negotiations & Negotiate New
Loan T&Cs
Creditor, MINECOFIN
Pre- Consultation
Head of External Finance
Sign-off New Loan Agreement
Resource Mobilization Officer
Prepare Draft Term Sheet & Press Statemt
Minister of Finance or Loan Agent Sign Loan Agreement Resource Mobilization Officer
Conclude New Loan Agreement All Stakeholders Negotiation Process Resource Mobilization Officer
Term Sheet & Loan Agreement to B/O Loan Agreement to Treasury, BNR, Ministry of
Justice & Project Agency
DMFAS Specialist
Input Loan Reorganization Details in DMFAS
Head B/O or Senior DMFAS Specialist
Check Loan Reorganization Details
Ministry of Finance and Economic Planning Public Debt Management Manual
Volume 2: Procedures
Date: 13/07/2012 Version: 4.0
Prepared: ____________ Authorized: ____________
Public Debt Management Manual: Procedures Page 15-1
15.0 DEBT REORGANIZATION SECURITIES
General Description
MINECOFIN may carry out operations involving buyback of domestic securities but may include buyback of external securities and/or exchange of existing securities for other securities (domestic and external). The major objective of these operations is liability and cash management, with the purpose of reducing the outstanding debt burden, by lengthening maturities or changing the maturity structure, adjusting the public debt profile, encouraging specific operations such as the development of benchmark bonds, or managing the aggregate cash position held across government bank accounts.
Environment/Context
MINECOFIN will use buyback or exchange to manage the aggregate cash position held in the Treasury Single Account or to consolidate debt issues in selected maturities. MINECOFIN will use tenders as the primary method for debt buyback, which may include a pre-released buyback calendar for domestic debt. The process to be followed by all market participants will be documented in the Operating Procedures published by BNR. MINECOFIN may use primary dealers and/or market makers to undertake the buybacks. After MINECOFIN has completed the transaction to buyback existing debt, the back office and Deputy Accountant General will be responsible for ensuring that the settlement amount is paid into the nominated settlement account. The back office will also be responsible for ensuring that DMFAS captures these transactions and the Deputy Accountant General is notified of the payment for input to IFMIS. Settlement will be through the government accounts at BNR.