Global Bond

Govt to Be Cautious in Issuing Global Bond

VIVAnews - The government is still preparing plot to issue global bond (medium term notes). It will be aimed at financing most of State Budget deficit valuing to Rp 132 trillion (US$11.2 billion).

According to State Minister of National Development Planning/Head of National Development Planning Agency, Paskah Suzetta, the global bond has been schemed as an alternative financing in addition to stand-by loans. "However, if it is not too urgent, the terms and conditions will be different from the normal financing. Therefore, we are seeking the cheaper," Suzetta said.

Given the current situation, Suzetta went on to say, there is a tendency that interest rate cannot be raised as high as it was. As a result, the government is extremely cautious in issuing bonds. Suzetta said if the government applies high interest rate, it will cause losses to the government.

"For instance, if we issue [bonds] with interest rate of nine percent, the market must be sound although we will gain losses because current interest rate in several countries is zero," Suzetta said. In addition, the government must be calculating in issuing global bonds.

Meanwhile, Head of Fiscal Policy Agency at the Department of Finance, Anggito Abimanyu, said that the 2009 State Budget deficit is resulted from state expenditure and fund stimulation. "However, we can cover the deficit from budget surplus and additional loans," said Abimanyu.

Translated by: Bonardo Maulana Wahono

Heboh Dugaan TPPO, Begini Pengakuan Mahasiswa Unnes saat Ikuti Ferienjob di Jerman
Pemain Chelsea rayakan gol Raheem Sterling

Chelsea Proteksi Raheem Sterling dari Hinaan Fans

Pelatih Chelsea, Mauricio Pochettino coba memproteksi Raheem Sterling. Pemain asal Inggris itu menjadi sasaran ejekan suporter saat tampil di Piala FA lawan Leicester.

img_title
VIVA.co.id
29 Maret 2024