[Asia Economy Reporter Kwangho Lee] The government will issue a total of 5 trillion won in treasury bills this month to support smooth fiscal execution.
Treasury bills are securities issued by the government or local governments in the financial market to temporarily cover shortages in treasury cash flow.
The Ministry of Economy and Finance announced on the 3rd that it plans to issue a total of 5 trillion won in treasury bills over four sessions on April 9, 16, 23, and 29. The issue will be 63-day bills.
The issuance method will be a competitive bidding targeting 20 Monetary Stabilization Bonds bidding institutions, 17 primary dealers of government bonds, 5 reserve primary dealers of government bonds, and 3 treasury fund management institutions.
The funds raised through this month's treasury bill issuance will be fully used to repay 7.5 trillion won in treasury bills maturing this month (issued in February). The shortfall of 2.5 trillion won will be raised through revenue collection.
The outstanding balance of treasury bills at the end of this month is expected to decrease by 2.5 trillion won from the previous month to 12.8 trillion won. The issuance and temporary borrowing limit from the Bank of Korea for treasury bills this year is 30 trillion won.
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