• Consolidated Debt of “General Government” Sector

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METHODOLOGICAL NOTES

1. Introduction:

1.1. Ministry of Finance in accordance with Article 36, paragraph 2 of the Public Finance Law publishes data on the consolidated debt of "General Government" sector. The data are compiled in accordance with Council Regulation (EU) № 1222/2004 concerning the compilation and transmission of data on the quarterly government debt and Council Regulation (EU) 479/2009 for the implementation of the Protocol on the Excessive Deficit Procedure annexed to the Treaty Establishing the European Community and Council Regulation (EU) No 679/2010 amending Regulation (EC) No 479/2009 as regards the quality of statistical data in the context of the Excessive Deficit Procedure.

1.2. The data for the Consolidated debt of "General Government" sector and sub-sectors shall be prepared in accordance with the competence of the National Statistical Institute (NSI) and the Ministry of Finance in accordance with the arrangements set out in the Memorandum of Cooperation among NSI, Bulgarian National Bank and the Ministry of Finance in the development, production and distribution of state financial statistics and national financial accounts. Providing Eurostat (EC) is carried out by NSI and published on the Eurostat website.

2. Definitions of "Consolidated general government debt" sector debt and by sub-sectors:

2.1 Consolidated debt of "General Government" sector means the debt of the general government" sector according to the requirements set out in Council Regulation (EC) № 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community.

2.2 "Central Government debt" means the debt of the central government according to the Council Regulation (EC) № 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community.

2.3 "Local Government debt" means the municipal debt and the debt of all persons falling within the local government sub-sector according to the Council Regulation (EC) № 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community.

2.4 "Debt of the social security funds" means the debt of the social security funds according to the Council Regulation (EC) № 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community.

3. Sources of information:

3.1 The main source of data is the official register of government and government guaranteed debt maintained in the Ministry of Finance according to the Article 38, paragraph 1 of the Government Debt law;

3.2 Central Register of Municipal Debt, administered on the basis of Article 1, paragraph 2 of the Municipal Debt law in the Ministry of finance.

3.3 Data from the trial balances of the first level spending units with a budget provided in the Ministry of Finance;

3.4 Annual financial statements of the institutional units those are included in addition to the "General Government" sector. The list of state enterprises, whose financial obligations in the form of bonds and loans are included in the scope of the "General Government" sector debt, is determined by NSI according to the Article 67, Paragraph 7 of the Public Finance law.

4. Basic methodological principles:

The consolidated debt of "General Government" sector is presented in nominal value total and by category of financial instruments and is payable at the end of each year.

4.1 Valuation - Financial assets and liabilities are measured at their nominal value, which according to (EC) Regulation № 479/2009 is their face value;

4.2 The distribution of debt instruments between long-term and short-term is based on original maturity.

4.3 Consolidation is an exclusion of financial liabilities held as a financial asset from other institutional units of "General Government" sector.

4.4 Gross debt and the financial assets and liabilities are consolidated into sub-sectors and between sub-sectors of "General Government" sector.

5. Classification and scope of financial instruments:

Classification of financial instruments is in accordance with the European System of Accounts (ESA 2010) and Manual on Government Deficit and Debt (MGDD) of "General Government" sector as financial liabilities of the "General Government" sector consists of the following categories:

Securities: includes short-and long-term securities other than shares, excluding financial derivatives, in local and foreign currency issued by the sub-sectors of "General Government" sector;
Credits: includes short-and long-term loans in local and foreign currency.

6. Revision policy

6.1 Revisions shall be carried out 2 times per year as follows:

• in April, resulting in reflection of changes and new circumstances in the course of preparing the data for the purposes of the notification tables for surplus/deficit and debt of "General Government" sector;
• in October, resulting in reflection of changes and new circumstances in the course of preparing the data for the purposes of the notification tables for surplus / deficit and debt of "General Government" sector;

6.2 Revisions can be made in relation to a change in methodology of Eurostat and / or methodological recommendations provided by Eurostat.

6.3 Information for the revisions is reflected in notes to the tables of consolidated debt of "General Government" sector.