Fri, Sep 24, 2010 - Page 11 News List

Bonds sale to boost state treasury

By Ted Yang  /  STAFF REPORTER

The Ministry of Finance said yesterday that it intended to sell NT$120 billion (US$3.7 billion) in government bonds in the fourth quarter of the year to fund the state treasury and cope with special budget needs.

The ministry said in a statement that NT$90 billion of the NT$120 billion would be used to repay public debt, while the remaining NT$30 billion will be used to help meet general and special budget needs for infrastructure to boost domestic investment and the economy.

The planned fourth-quarter bond sales remain the same as the NT$120 billion sold in the current quarter, but 14 percent less than NT$140 billion in the fourth quarter of last year, ministry data showed.

The ministry is set to sell NT$40 billion in five-year bonds on Oct. 22, NT$40 billion in 20-year bonds on Oct 28 and NT$40 billion in 10-year bonds on Dec. 9.

Taiwan has issued government bonds worth NT$460 billion in the first three quarters, compared with NT$330 billion in the same period last year.

For the full year, a total of NT$580 billion will be sold this year, up from NT$470 billion last year.

Apart from plans to sell government bonds, the ministry is scheduled to issue NT$100 billion in treasury bills in the fourth quarter, down from the NT$110 billion it sold between July and this month.

The treasury bills will be used to help state coffers meet short-term capital needs and finance the government’s debt, the ministry said.

The issuance of these treasury bills includes NT$20 billion with maturities of 182 days on Nov. 10, NT$25 billion in 91-day bills on Nov. 25 and NT$30 billion in 273-day bills on Dec. 13.

Up to the end of this year, the government will issue NT$335 billion in treasury bills in total, down from NT$435 billion sold last year, ministry data showed.

The issuing of government debt is aimed to meet a shortfall in budget revenue and help fund public infrastructure projects.

The government is facing a revised NT$167 billion deficit for this year and an NT$159 billion deficit next year, the Directorate-General of Budget, Accounting and Statistics said on Aug. 19.

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