Republika e Kosovës Republika Kosova Republic of Kosovo Qeveria Vlada Government Ministria e Financave - Ministarstvo za Finansija - Ministry of Finance Thesari i Kosovës Trezor Kosova - Treasury of Kosova QUARTELY DATA ON TOTAL DEBT Third Quarter 2015 Debt Management Division October 2015 1
Content Abbreviations... 3 INTRODUCTION... 4 1. TOTAL DEBT... 5 Total Debt Stock... 5 Total Debt trend... 5 Debt portfolio by currency... 6 Debt portfolio by interest type Q3 2015... 6 2. INTERNATIOANL DEBT... 7 International Debt Stock... 7 International Debt by creditors... 7 Withdrawals by creditors... 7 International Debt Service by creditors... 8 Composition of International Debt by creditors Q3 2015... 8 Composition of International Debt by currency and interest Q3 2015... 9 International Loan Agreements Q3 2015... 9 3. DOMESTIC DEBT... 10 Domestic Debt Stock... 10 Government Securities Issued Q3 2015... 10 Domestic Debt by instruments... 10 Domestic Debt by Holders Q3 2015... 11 Domestic Debt Service... 11 4. STATE GUARANTEES... 12 5. RISK INDICATORS... 12 2
Abbreviations DIFK EBRD GDP GS IBRD IDA IMF Imp. BO KfW MDE MH Q R SDR UniCredit Deposit Insurance Fund of Kosovo European Bank for Reconstruction and Development Gross Domestic Product Government Securities International Bank for Reconstruction and Development International Development Association International Monetary Fund Project Implementing Budget Organization German Agency for Reconstruction Ministry of Economic Development Ministry of Health Quarter(ly) Revised Data Special Drawing Rights UniCredit Bank in Austria 3
INTRODUCTION Pursuant to Law on Public Debt no. 03/L-175 and Regulation GRK - no. 22/2013 on Procedures for Issuance and Management of State Debt, State Guarantees and Municipal Debt, the Treasury publishes the report Quarterly Data on Total Debt. The Law on Public Debt defines the Total Debt as a total of State Debt and Municipal Debt. State Debt may be direct debt or onlend debt 1. Whereas regarding whose jurisdiction is subject to, Total Debt may be International Debt, and Domestic Debt. Domestic Debt is subject to the local jurisdiction, while International Debt is subject to the laws of a legal jurisdiction other than the Republic of Kosovo. Report is composed of five parts, the first part includes data on the Total Debt, the second part present data on International Debt, and the third part presents data on Domestic Debt, in the fourth part are presented risk indicators, and in the last part are presented data on State Guarantees. 1 Debt which is contracted by Government, but it has the right with a tripartite agreement to on-lend to a public sector entity. 4
1. TOTAL DEBT Total Debt Stock 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 International Debt 336.60 323.76 326.35 329.21 330.59 367.23 Central Level 336.46 321.73 316.54 318.71 314.78 343.30 On-Lending 0.14 2.03 9.81 10.50 15.81 23.93 Municipalities 0.00 0.00 0.00 0.00 0.00 0.00 Domestic Debt 73.31 152.51 256.52 293.61 318.55 352.25 Central Level 73.31 152.51 256.52 293.61 318.55 352.25 Municipalities 0.00 0.00 0.00 0.00 0.00 0.00 Total Debt 409.92 476.27 582.87 622.82 649.14 719.48 State Guarantees 0.00 0.00 10.00 10.00 10.00 10.00 Total Debt (% of GDP) 8.44% 9.10% 10.63% 10.76% 11.21% 12.47% Notes: International Debt also changes over the years and quarters as a result of exchange rate fluctuations. R Presents revised data, which have changed from previous report. Amounts are in million EUR. Total Debt trend Million EUR 800.00 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 14% 12% 10% 8% 6% 4% 2% 0% (% of GDP) Total Debt Total Debt (% of GDP) 5
Debt portfolio by currency 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 Total Debt 409.92 476.27 582.87 622.82 649.14 719.48 EUR 333.88 402.34 506.15 541.77 570.56 619.49 SDR* 76.04 73.93 76.73 81.05 78.58 99.98 International Debt 336.60 323.76 326.35 329.21 330.59 367.23 EUR 260.57 249.83 249.63 248.16 252.01 267.24 SDR* 76.04 73.93 76.73 81.05 78.58 99.98 Domestic Debt 73.31 152.51 256.52 293.61 318.55 352.25 EUR 73.31 152.51 256.52 293.61 318.55 352.25 Notes: Amounts are in million EUR. *It is net value exposed, which means the amount exposed excluding Euro component. Debt portfolio by interest type Q3 2015 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 Total Debt 409.92 476.27 582.87 622.82 649.14 719.48 Fix 296.86 370.54 481.14 516.52 547.88 586.93 Variable 113.05 105.73 101.73 106.29 101.26 132.55 International Debt 336.60 323.76 326.35 329.21 330.59 367.23 Fix 223.55 218.03 224.62 222.91 229.33 234.68 Variable 113.05 105.73 101.73 106.29 101.26 132.55 Domestic Debt 73.31 152.51 256.52 293.61 318.55 352.25 Fix 73.31 152.51 256.52 293.61 318.55 352.25 Note: Amounts are in million EUR. Debt portfolio by currency and interest type Q3 2015 14% 18% 86% 82% EUR SDR Fix Variable 6
2. INTERNATIOANL DEBT International Debt Stock 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 International Debt 336.60 323.76 326.35 329.21 330.59 367.23 Central Government 336.46 321.73 316.54 318.71 314.78 343.30 On-lent Debt 0.14 2.03 9.81 10.50 15.81 23.93 International Debt (% of GDP) 6.93% 6.17% 5.85% 5.60% 5.62% 6.27% Note: Amounts are in million EUR. International Debt by creditors Creditor 2012 2013 2014 Q1 2015 R Q2 2015 Q2 2015 IBRD 215.00 203.66 192.33 186.66 186.66 180.99 IDA 8.41 12.37 20.84 23.18 24.27 27.17 IMF 113.05 105.73 101.73 106.29 101.26 132.55 UniCredit - - 2.00 2.96 2.96 2.96 KfW 0.14 2.00 9.46 10.12 15.45 23.56 Total 336.60 323.76 326.35 329.21 330.59 367.23 Note: Amounts are in million EUR. Withdrawals by creditors Creditor 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 IDA 3.51 4.42 7.37 0.75 1.57 2.96 IMF 93.64 - - - - 35.64 UniCredit - - 2.00 0.96 - - KfW 0.08 1.86 7.46 0.66 5.33 8.12 Total 97.23 6.28 16.83 2.37 6.90 46.72 Note: Amounts are in million EUR. 7
International Debt Service by creditors Creditor Debt Service 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 IBRD Principal 11.34 11.34 11.34 5.67 0 5.67 Interest 8.14 8.94 8.46 4.05 0 3.93 IDA Principal 0 0 0 0 0 0 Interest 0.03 0.07 0.1 0.02 0.06 0.04 IMF Principal 0 2.7 10.7 2.91 2.92 3.64 Interest 0.90 1.10 1.10 0.28 0.27 0.46 UniCredit Principal 0 0 0 0 0 0 Interest 0 0 0.07 0.004 0.004 0.005 KfW Principal 0 0 0 0 0 0 Interest 0.35 0.13 0.54 0 0.33 0 Total 20.76 24.28 32.37 12.94 3.58 13.74 Note: Amounts are in million EUR. Composition of International Debt by creditors Q3 2015 7% 7% 1% 36% 49% IBRD IMF IDA KfW UniCredit 8
Composition of International Debt by currency and interest Q3 2015 27% 36% 73% 64% SDR EUR Fix Variable International Loan Agreements Q3 2015 Loan Creditor Imp. BO Direct Loan/ On-lent Loan Stand-By Direct IMF Government Arrangement Loan Kosovo Railway Route 10 MDE- On-lent EBRD Rehabilitation INFRAKOS Loan Project *According to exchange date of the Agreement date. Note: Amounts are in million. Agreement Date Agreemen t Currency Agreement Amount Amount in Euro Status 29.07.2015 SDR 147.50 187.58 N/A 04.09.2015 EUR 39.90 39.90 Not Ratified 9
3. DOMESTIC DEBT Domestic Debt Stock Domestic Debt (net) 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 New Issuances 73.31 79.20 104.01 37.09 24.94 33.70 Debt Stock 73.31 152.51 256.52 293.61 318.55 352.25 Domestic Debt (% of GDP) 1.51% 2.91% 4.59% 4.99% 5.42% 6.02% Note: Amounts are in million EUR Auction Instrument Government Securities Issued Q3 2015 Auction Date Maturity Date Weighted average yield (%) Coupon Rate (%) Amount Issued Nominal KV012-15 3 month 14.07.15 14.10.15 0.63% - 10.00 9.98 KV013-15 6 month 21.07.15 20.01.16 1.63% - 18.60 18.45 KV014-15 12 month 18.08.15 17.08.16 1.61% - 25.00 24.60 KV015-15 5 year 28.08.15 31.08.20 4.94% 4.90% 15.00 14.98 KV016-15 2 year 29.09.15 30.09.17 2.82% 2.80% 20.00 19.99 Notes: Rates presented in table are annually. Amounts are in million EUR. Net Domestic Debt by instruments 200.00 150.00 100.00 50.00-2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 3 month 6 month 12 month 2 year 3 year 5 year Note: Securities - nominal value 10
Domestic Debt by Holders Q3 2015 4% 3% 22% 71% Banks Pension Funds Insurance Companies Others Domestic Debt Service Domestic Debt 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Interest Payments 0.66 1.19 2.50 0.90 1.31 1.31 Principal Payments 0 0 0 0 0 0 Interest/Total Revenues (%) 0.05 0.09 0.17 0.06 0.08 0.09 Note: Amounts are in million EUR 11
4. STATE GUARANTEES 2014 Q1 2015 Q2 2015 Q3 2015 State Guarantees 10.00 10.00 10.00 10.00 EBRD Guarantee for Credit Line to DIFK 10.00 10.00 10.00 10.00 State Guarantees (% of GDP) 0.18% 0.17% 0.17% 0.17% Note: Amounts are in million EUR 5. RISK INDICATORS 2012 2013 2014 Q1 2015 R Q2 2015 Q3 2015 Total Debt/GDP 8.44% 9.10% 10.63% 10.76% 11.21% 12.47% International Debt 6.93% 6.17% 5.85% 5.60% 5.62% 6.27% Domestic Debt 1.51% 2.91% 4.59% 4.99% 5.42% 6.02% Weighted Average Interest Rate 2.97% 2.62% 2.64% 2.60% 2.63% 2.59% International Debt 3.21% 3.15% 3.20% 3.12% 3.15% 2.95% Domestic Debt 1.89% 1.50% 1.92% 2.01% 2.10% 2.22% Average Time to Maturity (years) 11.51 9.24 5.20* 4.87 5.30 4.96 International Debt (years) 14.00 13.42 7.79 7.55 8.17 7.64 Domestic Debt (months) 1.53 4.28 8.13 8.44 10.22 11.67 % Total Debt 100% 100% 100% 100% 100% 100% International Debt 82.12% 67.98% 56.00% 52.86% 50.93% 51.03% Domestic Debt 17.88% 32.02% 44.00% 47.14% 49.07% 48.97% Notes: Debt/GDP indicator also includes State Guarantees. *Change in Methodology Previous calculations have been done based on the date of the last installment. From now on, the base for calculation will be actual cash flows of every installment. 12