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Ottawa, December 17, 1998
1998-128
Government Releases 1998 Debt Management Report
The Department of Finance today issued the federal Debt Management Report for 1998. This annual report outlines the key elements of the federal debt operations and provides an overview of the federal debt management strategy.
In 1997-98, the federal government achieved a budgetary surplus for the first time in almost 30 years. As a result, the federal government has begun paying down its debt. In fiscal year 1997-98, the federal government retired $9.6 billion of its market debt.
The fundamental debt management objective is to raise stable, low-cost funding for the government. Reduced exposure to changes in interest rates has been achieved by reaching, in October, the government's goal of having two-thirds of its debt in fixed-rate form.
Another strategic objective for debt management is to ensure the maintenance of a well-functioning domestic capital market. To maintain liquidity and market integrity in a declining debt environment, the government has recently undertaken a number of actions, such as changes to the issuance frequency of Treasury bills and 30-year bonds, revisions of auction rules for Government of Canada securities, and support in the development of a Code of Conduct governing trading in the secondary market by the Investment Dealers Association. As the market debt declines, the government will continue to consult market participants on possible adjustments to debt programs, with emphasis on the maintenance of a liquid and transparent Government of Canada debt market.
A continuing federal debt management priority is to modernize retail debt products and improve distribution. The government, through Canada Investment and Savings (CI&S), will continue to provide individual Canadians with greater opportunity to invest in Canada through updated, more relevant savings and investment products.
Copies of this report are available at a cost of $10.70 from the Department of Finance Distribution Centre – telephone (613) 995-2855.
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For further information
| Rob Stewart Debt Management Section (613) 992-4468 | Jean-Michel Catta Public Affairs and Operations Division (613) 992-1574 |
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| Last Updated: 2004-07-15 |
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