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Treasury;UK Debt Management Office

Answer

Mr. Tyrie: To ask the Chancellor of the Exchequer (1) if he will publish the Debt Management Office's profit and loss account for each year since its inception; [159999] (2) how much of each short term money asset has been held by the Debt Management Office, representing its short term money under management for each quarter since its creation; [160001] (3) how much short term money has been under management by the Debt Management Office for each month since the Debt Management Office's creation; [159998] (4) how much of each short term money market asset has been bought by the Debt Management Office from the net increase in short term assets in 2000-01 under management; and if he will publish the results in tabular form; [160000] (5) what returns have been made on short term assets managed by the Debt Management Office for each quarter since its creation; and what bench marks have been used. [160002] Miss Melanie Johnson: The information requested falls within the responsibility of the Chief Executive of the Debt Management Office. I have asked him to reply. Letter from Mike Williams to Mr. Andrew Tyrie, dated 3 May 2001: The Economic Secretary to the Treasury has asked me to reply to Parliamentary Questions numbers 15,998, 15,999, 16,000, 16,001 and 16,002. The increase in the Government's net short term cash position, represented by the relevant net short-term assets held on the Debt Management Account (DMA) which is managed by the Debt Management Office (DMO), was £13.4 billion in the course of the 2000-01 financial year (including a £0.5 billion cash deposit at the Bank of England){1}. The DMO did not acquire responsibility for managing the Exchequer cash position until 3 April 2000. The amounts of specific classes of short-term assets that are bought by the DMO, are matters of commercial confidentiality between the DMO and its counterparties. For related reasons the DMO does not publish monthly totals of its short-term net cash position. However, paragraph 20 of the DMO's Exchequer Cash Management Operational Notice (dated 20 January 2000), as supplemented by the DMO's announcement of 12 September and 9 November 2000, list the range of financial instruments in which the DMO may transact. These are set out in the schedule attached. All the DMO's market transactions flow through the DMA which came into operation in November 1999. The audited accounts for the DMA for the period to end March 2000 (including an income and expenditure account), will be published in due course. {1} The details of the financing arithmetic outturn are available on the DMO web site www.dmo.gov.uk Schedule: Financial instruments in which the DMO may transact _________________________________________________________________________________________________. Basis of dealing Outright purchases and sales Gilt purchases{1} Tenders and bilateral Gilt strip purchases{1} Tenders and bilateral HMT bills Tenders and bilateral Selected eligible bank bills{1} Bilateral Certificates of Deposit (CDs) Bilateral Selected commercial paper (CP) selected bank Bills and other Bilateral short-term debt issued by high Quality issuers, including supranationals and Foreign Governments{2} Purchases from the market for future resale (`reverse repo') and Sale to the market for future repurchase (`repo') Instruments Gilts (deliveries by value `DBV' and General Collateral `GC' Tenders and bilateral including strips) HMT bills Tenders and bilateral Non-Sterling HMT paper Bilateral Selected eligible bank bills Bilateral £ and other currency paper issued by high quality supranational Bilateral and foreign government issuers Other Unsecured cash borrowing and lending Bilateral _________________________________________________________________________________________________. {1} Less than six months to maturity {2} Less than 12 months Note: The DMO may also use short-term currency swaps, Forward Rate Agreements (FRAs) and interest rate futures to manage foreign currency and interest rate exposures. All foreign currency exposures will be hedged back into sterling.

Secondary information

Type

Written question

Reference

367 c732-4W;367 c732-3W; 159999;160001;159998;160000;160002

Session

2000-01

Subjects

Assets Profits Public finance Public sector debt Wealth UK Debt Management Office

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk