The Financial Management Division (FMD) plays a pivotal role in managing and advising the government on public debt.
Its primary responsibilities include:
- Government Borrowing Plan: The division produces the government’s borrowing plan, both on an annual basis and in the medium-term. It ensures that the financing requirements of the government are met effectively.
- Debt Service Payments: The division oversees debt service payments, ensuring that obligations are met in a timely manner. It manages these payments at the lowest possible costs while maintaining a prudent level of risk.
The Financial Management Division comprises six branches, each with specific functions:
- Security Execution Branch (SEB): Manages the issuance of Treasury Bills and Treasury Bonds. It formulates issuance plans, manages government cash flow, and maintains cash balances.
- Loan Execution Branch (LEB): Raises external financing through loans and securities to support government development programs. It facilitates on-lending to state-owned enterprises (SOEs) and provides guarantees to SOEs and government agencies. It also advises on financing major government investment projects.
- Strategy & Risk Management Branch (SRMB): Manages financial risk associated with government debt policies. Develops and monitors debt strategies, produces debt bulletins, and provides regular reporting on public debt. Coordinates the FMD’s contributions to the production of budget strategies, mid-year economic and fiscal outlooks (MYEFOs), and final budget outcomes (FBOs).
- Accounting & Settlement Branch (ASB): Handles debt servicing, including repayment of all state loans. Manages the drawing down of loans, collects loan proceeds, updates relevant financial systems, and provides annual updates of government accounts statements.
- Database Management & Statistical Reporting Branch (DMSRB): Manages the Debt Recording and Management System (CS-DRMS) and Meridian systems. Provides debt data for various internal and external reports, including government financial statistics, World Bank debt reporting system, Bank of Papua New Guinea (BPNG) quarterly reports, and communication security (COMSEC).
- Audit & Compliance Unit Branch: Monitors, reports, and provides advice to improve the division’s compliance with internal business procedures, government policies, and relevant legislation and regulations. Ensures compliance with international best practices in debt management.
Through its specialised branches, the Financial Management Division ensures efficient debt management, sound financial strategies, and compliance with relevant regulations and best practices.