Government set to raise NT$215bn in Treasury bond sale

By Kevin Chen  /  Staff reporter

Tue, Dec 24, 2013 - Page 14

The government is set to raise NT$215 billion (US$7.16 billion) by selling Treasury bonds in the first quarter of next year. The sale is set to finance government debt and fund infrastructure construction, the Ministry of Finance said in a statement yesterday.

The planned sale is aimed at raising 126.32 percent more than the NT$95 billion generated by a sale of bonds this quarter, but 8.51 percent lower than the NT$235 billion sold in the same period last year, ministry data showed.

The government’s debt in the first quarter includes NT$120 billion for debt repayment and NT$95 billion for special budgets and public works.

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

To overcome a fiscal shortfall of NT$214.4 billion, the government has sold NT$625 billion in Treasury bonds this year. By comparison, a record NT$665 billion of bonds were sold last year and NT$620 billion in 2011.

The deficit figure is expected to drop to NT$209.9 billion next year, according to the government’s annual budget for next year, which was released by the Directorate-General of Budget Accounting and Statistics in August.

Meanwhile, the ministry said it was also set to sell shorter-maturity Treasury bills to help state coffers meet short-term capital requirement needs and to repay debt.

In the first quarter next year, the ministry plans to sell NT$105 billion in Treasury bills, the statement said.