Government to Reduce Issue of Government Bonds

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Government to Reduce Issue of Government Bonds

The government has decided Monday to reduce the issue of treasury bonds in order to stabilize interest rates until the end of this year, while issuing only one trillion won in foreign-currency denominated national bonds this week.
Finance and Economy Vice-Minister Uhm Rak-yong held a financial policy meeting on November 22.
The vice-minister stated, 'The government has decided to reduce the issue of treasury bonds and foreign exchange stabilization bonds, which, by the end of this year, were supposed to be reach 5.9 trillion won and 5 trillion won, repectively.'
The government plans to issue 1.9 trillion worth of treasury bonds in December, which is only one-third of the originally-intended 5.9 trillion won.
Mr. Uhm said, 'The recent decline in the won-to-dollar rate is mainly due to the influx of foreign investment into the Korean stock market, but the amount of influx will tail off in December.'
Regarding the rise of interest rates next year, Vice-Minister Uhm said, 'The pressure to raise interest rates will almost certainly not increase, as the economic growth rate is likely to drop and the trade surplus will decline next year.'
Kang Joo-an : jooan@joongang.co.kr
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