State Debt Committee
of the City of Moscow

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Financial Agency of the City of Moscow (Mosfinagency) (permalink )

Specialised State Unitary Enterprise “Financial Agency of the City of Moscow” (SSUE “Mosfinagency”) was established in June, 1999 in accordance with the Government of Moscow Resolution No.213 of 23 March, 1999.

The main objectives of Mosfinagency are as follows: implementation of the strategy of investment development of the City’s economy through attraction of capital in domestic and foreign capital markets, ensuring functioning of the centralised debt management and investment system, as well as further development of the City’s capital market infrastructure. To achieve the aforementioned objectives Mosfinagency, directed by State Debt Committee of the City of Moscow, performs the following main functions:

• organises the issue, placement and circulation of the securities of the City of Moscow;
• ensures issuance of loans on behalf of the City, their service and repayment;
• conducts the activities directed at management of the City’s debt (refinancing of debt obligations, optimisation of the debt structure, advanced re-purchase of bonds, repayment of debt obligations and other operations).

The transfer of state debt management functions from state authorities to a specialised professional agency is a common practice used world-wide. The application of such a practice increases the effectiveness of investment and debt issuance system, decreases the operating and debt service expenses, minimises financial risks and makes the whole system clear and transparent.

Mosfinagency is subordinate to State Debt Committee of the City of Moscow. The Agency is managed by Director General appointed by the Chairman of the Committee. The activities performed by the Agency and related to functioning of the City’s debt issuance system are stipulated in the agreement on provision of services.

Collective decisions on the most important activities of Mosfinagency are made by the Supervisory Board. The members of the Supervisory Board are representatives of the City Administration. The Chairman of the Supervisory Board is the Chairman of State Debt Committee of the City of Moscow.

Upon resolution of the Committee Mosfinagency performs accounting of fund movement within the City’s debt issuance system and carries out complex planning of financial and economic criteria and norms applied in the City’s debt issuance system. The specialists of the Agency participate in development and improvement of the legislative and contractual base of the debt issuance system.

Mosfinagency also provides technical, organisational, informational, methodological and advisory assistance to the participants of the City’s debt issuance system, as well as to the other subjects of the Russian Federation and municipal entities formulating or implementing similar debt issuance systems.