[Asia Economy Reporter Joo Sang-don] The Ministry of Economy and Finance announced on the 29th that it plans to issue a total of 7 trillion won in treasury bills (63-day maturity) in four installments during June to support smooth fiscal execution.
Treasury bills are securities issued in the financial market (with maturities of 63 days or 28 days) to cover temporary shortages in the treasury's cash flow. They are short-term borrowing instruments that must be repaid within the year.
The funds raised through the issuance of treasury bills this month (7 trillion won) will be used to address temporary cash shortages due to timing differences between treasury revenue and expenditure (3.5 trillion won) and to repay existing treasury bills (3.5 trillion won).
The outstanding balance of treasury bills at the end of June is expected to increase by 3.5 trillion won from the previous month to 14.5 trillion won.
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