Sulawesi to issue bond<\/p>\n
Following the revision of the 1999 intergovernmental revenue
\nsharing law that allows regions to issue debts to raise cash, the
\nprovincial administrations in Sulawesi plan to sell a collective
\nbond to help finance local development programs.<\/p>\n
\"We're planning to set up, what we call Celebes Fund. But
\nwe're still waiting for the government (implementing) regulations
\non this (bond) policy,\" Gorontalo Governor Fadel Muhammad said on
\nMonday.<\/p>\n
He said that in the first phase, the region would issue around
\nUS$50 million worth of bonds, with tenure ranging from seven to
\n15 years and interest rates higher than the market's average.<\/p>\n
\"It would be better if the funds are later used to build
\ninfrastructure, such as building rice-processing barns or
\nhotels,\" Fadel said.<\/p>\n
He added that the buyers could be either from foreign or local
\ninvestors and that each province would have its share based on
\nthe initial arrangements.<\/p>\n
A collective issue, said Fadel, would be much better and
\neasier compared to an individual issue as investors would prefer
\nbuying bonds of a bigger size than smaller ones.<\/p>\n
Besides Sulawesi, the provincial administrations of Riau and
\nEast Java are reportedly also making preparations to issue bonds.<\/p>\n
Before issuing bonds, provinces and regencies must first
\nobtain approval from their respective local councils and the
\nfinance ministry.<\/p>\n
Regional bonds are not guaranteed by the central government,
\nraising fears that possible default will adversely affect the
\nwhole economy. --JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sulawesi-to-issue-bond-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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