Croatian Ministry of Finance Implements Debt Management Solution

Wallstreet Suite installed by PreFIS to improve debt management practices The Ministry of Finance for the Republic of Croatia, has successfully implemented Wallstreet Suite to improve its debt management practices. The system was deployed by PreFIS, an Expert Certified Partner of Wall Street Systems, which was contracted by the European Commission.

The Ministry of Finance (MoF) is responsible for public debt management and, according to the Budget Act of 2003, should recommend to the Government the best borrowing methods, while keeping a record of current debt, as well as issued guarantees and loans. Previous to this implementation, the MoF used a debt recording system, which was not integrated with the MoF’s primary budget execution system. Following the Croatian Government’s target decision to decrease the overall fiscal deficit to 2.8% of GDP by 2007, establishing a transparent and efficient debt management capacity became a priority. The wide range of financial instruments and currencies used by the MoF meant it required an advanced cross-asset debt management solution to cope with complexities in the portfolio. Following a competitive tender it selected PreFIS and Wallstreet Suite. This fully integrated front, middle and back office solution was able to provide the necessary straight-through processing (STP) functionality, while ensuring transparency of all transactions. The project was divided into two parts. The first, which was completed in July 2006, involved software installation, migration of the customer’s data and training at the MoF headquarters in Zagreb. The second phase – the Alignment of the Business Process – was successfully completed in March 2007. This involved system configuration and development of customised interfaces to ensure best practice debt management operations which comply with European and international standards. Now fully installed, Wallstreet Suite supports a multi-currency structure including Kuna, the domestic Croatian currency, and is fully integrated with the MoF’s budget execution, accounting, market data and auction systems. “The Wallstreet Suite implementation has enabled the improvement of our debt management practices, in line with European and international best standards,” said Hrvoje Radovanic, head of the Public Debt Management Department at the Ministry of Finance. “The cooperation between the Ministry of Finance and the PreFIS team was an integral part of this project and we were particularly impressed with the speed and efficiency of the installation. We’re confident that we now have a robust, secure and effective solution for debt record-keeping, risk analysis and the management of public debt.” Wallstreet Suite prices and values all the treasury products the MoF transacts, handles complex transaction structures including loans and guarantees, and provides real-time capture of all transactions. The solution provides end-of-day positions for the debt originators and analysts. It also enables real time reporting, risk monitoring, as well as cash flow forecasting. The straight-through processing functionality of Wallstreet Suite automates the lifecycle of transactions and facilitates the export of accounting entries and payment instructions into other systems. The system also provides industry standard audit and security features including the ability to clearly define and control access permission for each user “This implementation is a great example of best practice debt management in emerging markets,” said Terry Beadle, executive vice president for global markets and government at Wall Street Systems. “The STP functionality of our solution will vastly improve control and increase efficiencies for the Croatian Ministry of Finance.”