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2000 April Report of the Auditor General of Canada

April 2000 Report—Chapter 8

Exhibit 8.2—Federal Debt Managers

The Department of Finance, in conjunction with the Bank of Canada and Canada Investment & Savings (CI&S), the government's retail debt agency, manages federal market debt. The Financial Markets Division of the Department of Finance provides analysis and develops policies and recommendations for the federal government's borrowing programs, including borrowing for official reserves and managing financial risks.

The Division works in partnership with the Bank of Canada, the government's fiscal agent, in all aspects of debt management. As fiscal agent, the Bank of Canada is specifically responsible for the operational aspects of debt management, for example, conducting the auctions of government debt, issuing debt instruments, making interest payments and borrowing in foreign currency. The Bank also has responsibility for monitoring market activities and advising on debt management policy, as well as operating the government's Risk Management Unit.

CI&S has primary responsibility for managing the retail debt portion of federal market debt. It is a special operating agency of the government and is responsible for contributing to the fundamental objective of debt management - stable, low-cost funding. It does this by developing and implementing the retail debt component of the federal government's domestic debt program.

Source: Department of Finance, Debt Management Report, 1998-99