FINANCIAL RISKS ASSOCIATED WITH THE GOVERNMENTAL PUBLIC DEBT’S PORTFOLIO

• Main Authors: MARIANA MAN, ROXANA MARIA MARIN
• Format: Article
• Language: English
• Published: University of Petrosani 2010-01-01
• Series: Annals of the University of Petrosani: Economics
• Subjects: governmental public debt; re-financing risk; market risk; risk analysis
• Online Access: http://www.upet.ro/anale/economie/pdf/20100117.pdf

The management of public debt is a process strictly connected with and dependent on fiscal and budget policy as well as on monetary policy. Under such circumstances the analysis of governmental public debt’s portfolio is carried out by taking into consideration both the internal macroeconomic evolutions and estimations (economic growth, inflation, budget incomes and the level of budget deficit, monetary conditions and structural reforms –pensions’ reform), the efficiency of capital internal market, and the evolution of world-wide economy influencing Romania’s loan terms on international financial markets. An important component of the management of governmental public debt is the management of the risks connected to debt’s portfolio that involves activities of identification, evaluation, and insurance against various categories of risk.