Syndicate
Medium and Long Term Public Debt
The public debt of medium and long term are established by securities of fixed interests corresponding to debts issued by the government or other public institutions (official organisms, municipal government, public institutions (official organisms, municipal government, public institutions, etc.)
The bonds and liabilities are, within the debt of medium and long term, a substantial part of the public debt.
The treasury is the public institution in charge of issuing the public debt, fixing its characteristics and deciding the frequency of the emissions that go to the market. In this operation the Central Bank of the country acts as a treasury agent by supervising all the stages: emission, payments, amortizations, etc.
Actually, the assets issued by the government are three: treasury bills, as a way of financing at short term, and government bonds and liabilities as instruments for financing at medium and long terms.
The distinction between government bonds and liabilities resides on their life term that could be from two to five years or of a longer term, respectively. Normally, the bonds are usually issued at terms of three or five years and the liabilities at ten and fifteen years. Immediately we detail the characteristics of both government bonds.
They are securities with fixed interests issued to the bearer, represented by notations in account, with a prefixed minimal nominal, an amortization term of between three or five years and payments of interests by expired annuity (they could also have half year payments but its use is not very common).