Govt sets March 16 for second bond issue<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government will launch its second bond issue this year on
\nMarch 16, worth around Rp 2 trillion (US$235.29 million), through
\nan open auction.<\/p>\n
The bonds are expected to carry a fixed interest rate of 11
\npercent payable twice a year, due to mature in December 2012, a
\npress statement said on Tuesday.<\/p>\n
If it materializes, it will be the second issue of domestic
\nbonds this year, after the government issued Rp 2.52 trillion
\nworth of bonds in February with a weighted average yield of 11.82
\npercent, which was 2.14 oversubscribed.<\/p>\n
In the past two years or so, the government has been issuing
\nbonds to raise fresh funds to help plug the budget deficit. The
\nbudget has been crippled by huge debt repayments -- primarily
\ndomestic ones.<\/p>\n
For that purpose, the government plans to issue Rp 28.5
\ntrillion in domestic bonds this year, as against some Rp 11.7
\ntrillion issued last year.<\/p>\n
Throughout 2004, some Rp 21.5 trillion of bonds will mature,
\nincluding Rp 7 trillion that already matured last month.<\/p>\n
Critics said that such a scheme, which in principle only
\nextends the maturity profile, does not resolve the chronic debt
\nproblems -- but only moves them to future generations.<\/p>",
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"sponsor": "Okusi Associates",
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