✨ Financial Transactions and Debt Management
3384 NEW ZEALAND GAZETTE No. 146
26. Swap Transactions
As permitted by Section 91A of the Public Finance Act 1977, the Government entered into currency swap arrangements during the year. Under such arrangements the proceeds of a borrowing are converted into a different currency and, simultaneously, a forward exchange agreement is executed providing for a schedule of future exchanges of the two currencies in order to recover the currency converted. The effect is to transform the cost of the original borrowing to a cost which reflects the market yield of the currency obtained in the conversion.
While it is impracticable to record the details of the swap arrangements in the public debt tables, the following schedule shows the effect of the swap transactions undertaken during the year. The amounts in brackets disclose the equivalent principal payments required under the swap agreements while other amounts disclose the resulting equivalent principal receipts accruing from the swap agreements. The amounts have been calculated using exchange rates applying as at 30 June 1988. The amounts stated below in New Zealand dollars relates to the following currencies:
| Maturity Year Ending 31 March | Currency $(000) |
|---|---|
| US$ | |
| 1991 | 185,019 |
| 1992 | 419,939 |
| 1993 | 334,567 |
| 1994 | 1,073,766 |
| 1996 | 717,911 |
27. Debt Services—Administration and Management
The charges and expenses in connection with raising and repaying loans are now recorded in the Loans Redemption Account where loan proceeds are credited, because these loans are raised for refinancing purposes.
Management charges and expenses/receipts in connection with swap transactions result from the net effect of upfront swap receipts exceeding payments for the quarter.
G. C. SCOTT,
Secretary to the Treasury
29 July 1988
R. C. W. HAMILTON,
Director, Finance and Management,
The Treasury
29 July 1988
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VUW Te Waharoa —
NZ Gazette 1988, No 146
NZLII —
NZ Gazette 1988, No 146
✨ LLM interpretation of page content
💰 Swap Transactions under Public Finance Act 1977
💰 Finance & RevenueCurrency Swap, Public Finance Act, Exchange Rates, Debt Management
- G. C. Scott, Secretary to the Treasury
- R. C. W. Hamilton, Director, Finance and Management, The Treasury
💰 Debt Services Administration and Management
💰 Finance & Revenue29 July 1988
Loan Redemption, Swap Transactions, Management Charges, Treasury
- G. C. Scott, Secretary to the Treasury
- R. C. W. Hamilton, Director, Finance and Management, The Treasury