The New Zealand Debt Management Office has expanded its programme for issuing bonds by $6.5 billion over the next four years and flagged it will sell a further $7 billion in debt the following year.
The DMO will issue $14 billion in bonds in the 2012/13 year, an increase of $500 million from the budget, and sell an unchanged $10 billion the following year. That will see some $200 million of nominal bonds in each of the tenders in the March quarter next year, it said in a statement.
The office added $2 billion to the 2014/15 programme for $10 billion in issuance, and raised its 2015/16 forecast by $4 billion to $ 7 billion.
"We're expanding the borrowing programme over the next few years because the surpluses will be smaller than forecast - that is a concern," Finance Minister Bill English said.
The Treasury now sees net debt topping out at $75.9 billion in 2016/17, though that's a smaller percentage of gross domestic product than in the two previous years.
English told a media briefing in Wellington the government will need to consistently produce surpluses of $2 billion to $3 billion if it wants to achieve its debt repayment targets in the future.
The DMO will embark on a mid-curve bond in the near future, with an April 2020 maturity likely, it said.
Its inflation-linked bond programme will see tenders begin on Feb. 7 next year, with $200 million offered each week for the remainder of the fiscal year.
The maximum tranche size will be set $6 billion, and is expected to make up between 10 percent and 20 percent of the government's issue bonds.
BusinessDesk.co.nz
Comments from our readers
No comments yet
Add your comment:
Related News
Canadian pension fund likes NZ forest growing conditions
NZ annual current account gap narrows in 3Q as trade balance shrinks
Wellington Drive shareholders approve $2.1M placement, guidance affirmed
SkyCity to spend A$300M on Adelaide Casino redevelopment
Energy Mad lowers FY guidance, gets $1M from SuperLife
NZ dollar drops vs. euro after Greek upgrade, Spanish debt sale
OceanaGold to lift gold output as Didipio comes on stream
While you were sleeping: Optimism on US budget talks
Rugby World Cup provides $573 mln fillip to NZ economy, report shows
Mykris off to strong start, declares maiden dividend
lionel richie kenny rogers avatar the last airbender david wright cory booker cubs cj wilson
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.