Government plans bond sales of NT$140 million

BOOST THE COFFERS::The Ministry of Finance also plans to sell NT$105 billion in Treasury bills to help the state meet capital requirement needs and to repay debt

By Kevin Chen  /  Staff Reporter

Mon, Sep 26, 2011 - Page 12

The government is set to sell NT$140 billion (US$4.61 billion) in Treasury bonds in the fourth quarter this year, after issuing NT$480 billion during the first three quarters, as it faces a NT$142.6 billion deficit this year.

The planned bonds will cover NT$138 billion tagged for debt repayment and NT$2 billion for special infrastructure budgets aimed at boosting domestic investment and the economy, the Ministry of Finance (MOF) said in a statement posted on its Web site on Friday.

The planned bond sales in the October-to-December quarter will be 12 percent higher than the NT$125 billion sold in the current quarter and 16.67 percent more than the NT$120 billion sold in the final quarter of last year, ministry data showed.

Including the planned sale of NT$140 billion in bonds during the fourth quarter, a total of NT$620 billion in bonds will be sold this year, up from NT$610 billion last year and NT$470 billion in 2009, data showed.

The government faces a revised NT$142.6 billion deficit this year after a deficit of NT$167 billion last year. The figure is expected to increase to NT$209.5 billion next year, the Directorate-General of Budget, Accounting and Statistics said on Aug. 18 after the Cabinet approved the government’s annual budget for next year. The budget projects revenues of NT$1.7295 trillion and expenditures of NT$1.939 trillion for next year.

In the Friday statement, the ministry said it is set to auction NT$40 billion in five-year bonds on Oct. 17, NT$35 billion in 20-year bonds on Nov. 1, NT$30 billion in 30-year bonds on Nov. 15 and NT$35 billion in 10-year bonds on Dec. 26.

Apart from the bond sales, the ministry also plans to sell NT$105 billion in Treasury bills in the fourth quarter, up from the NT$65 billion sold in the current quarter, to help state coffers meet short-term capital requirement needs and to repay debt.

The NT$105 billion in Treasury bills will include NT$25 billion in 182-day bills to be sold on Oct. 28, NT$20 billion in 273-day bills to be sold on Nov. 28, NT$30 billion in 182-day bills to be auctioned on Dec. 8 and a sale of NT$30 billion in 273-day bills on Dec. 20, the statement said.

Meanwhile, the government will repurchase four tranches of Treasury bills totaling NT$112.61 billion on Friday as it wants to strengthen its debt management with more flexibility in the use of long-term and short-term funds, the ministry said in a separate statement on Friday.