Government to Issue '4 Trillion' Fiscal Bonds Next Month

[Asia Economy Sejong=Reporter Lee Junhyung] The government will issue treasury bills worth 4 trillion won next month.

The Ministry of Economy and Finance announced on the 27th that it will issue treasury bills worth 4 trillion won (63-day maturity) in four installments next month. Treasury bills are securities issued in the financial market by the government to cover temporarily occurring shortages in the national treasury. According to the National Treasury Management Act, when the government temporarily lacks funds, it must raise funds by issuing treasury bills before temporarily borrowing from the Bank of Korea.

The government typically actively utilizes treasury bills as a short-term temporary borrowing tool in the first half of the year to expedite fiscal execution. This is why the government issued treasury bills worth more than 4 trillion won not only in February last year (4 trillion won) but also in February 2021 (6 trillion won).

This treasury bill issuance will be conducted through a competitive bidding process. The issuance size for each installment is 1 trillion won. The issuance targets include Monetary Stabilization Bonds bidding institutions (21), government bond specialist dealers (18), reserve government bond specialist dealers (3), and national treasury management institutions (3).