Tuesday, April 10, 2012

Green light for MOF to borrow S$170b more via issuance of government securities

SINGAPORE: Parliament has authorised the Ministry of Finance to borrow a further S$170 billion, through the issuance of government securities.

The increase raises the ceiling for issuing government securities to S$490 billion.

Minister of State for Finance Josephine Teo said 80 per cent of the increase will be issued to the Central Provident Fund to meet its investment needs.

The remaining 20 per cent will go to the Monetary Authority of Singapore, for the issuance of Singapore government securities in line with the growth of financial markets, and to enhance the efficiency and liquidity of Singapore debt markets.

Ms Teo reiterated that all proceeds from the issuance of securities are invested, not spent.

The last increase was approved by Parliament in 2009, when the limit was raised from S$250 billion to S$320 billion.

Mrs Teo said" "What has happened in that time was the increase in special government securities was faster than expected as the economy recovered very rapidly, and exceeding the expectations. As a result this initial borrowing limit, or issuance limit that we sought in 2009 is going to be reached much earlier than we expected. This is why we're coming to Parliament again to ask for the issuance limit to be raised."

- CNA/ck

View the original article here

Source Form Channel News Asia

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