Fri, Jun 24, 2011 - Page 11 News List

MOF sells NT$125bn in T-bonds

By Kevin Chen  /  Staff Reporter

The government is set to sell NT$125 billion (US$4.32 billion) in Treasury bonds in the third quarter to finance debt repayments and special budgets for infrastructure construction, the Ministry of Finance (MOF) said in a statement posted on its Web site yesterday.

These will cover NT$113 billion tagged for debt repayment and NT$12 billion for special infrastructure budgets designed to boost domestic investment and the economy, the ministry said.

The planned third quarter bond sales will be 26.47 percent less than the NT$170 billion sold in the current quarter, but 4.17 percent more than the NT$120 billion sold in the third quarter of last year, ministry data showed.

The ministry is set to auction NT$30 billion in five-year bonds on July 15, NT$30 billion in 20-year bonds on July 28, NT$30 billion in 30-year bonds on Aug. 17 and NT$35 billion in 10-year bonds on Sept. 27.

Apart from the bond sales, the ministry also plans to sell NT$65 billion in Treasury bills in the third quarter, up from the NT$60 billion sold in the second quarter, to help the state coffers meet short-term capital requirements needs and to repay debt.

The NT$65 billion in Treasury bills will include NT$30 billion in 273-day bills to be sold on Aug. 10 and NT$35 billion in 91-day bills to be auctioned on Sept. 8, the statement said.

The government faces a NT$159 billion deficit this year following a revised NT$167 billion deficit last year, the Directorate-General of Budget, Accounting and Statistics said on Aug. 19 last year.

Last year, the government issued NT$610 billion in Treasury bonds to fund the state treasury and special budgetary needs. That was up from the NT$470 billion in Treasury bonds issued in 2009, ministry tallies showed.

The ministry did not specify the total value of bonds to be issued this year.

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