Budget 2009: NZ Govt bond sales to soar 55% as deficits balloon
The New Zealand Debt Management Office will sell up to $8.5 billion of bonds this financial year, up from $5.5 billion the previous year, with a further $11.5 billion forecast next year, and $15 billion in each of the following two years.
The DMO's weekly sales will rise to between $150 million and $200 million per week, up from a $75 million average in previous years.
The government stressed the importance of controlling debt in today's budget, and the Treasury estimates both net and gross debt will peak in the June 2017 year.
"One of the benefits of our low debt levels is it gives us time to make considered decisions" in addressing the global economic downturn, said Finance Minister Bill English to a press conference. "Inevitably, an increase in public debt will have some crowding-out affect on private sector activity."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
