BoB seeks foreign investors for govt’s P55bn debt programme
Friday, June 28, 2024 | 130 Views |
Making plans: Dekop PIC PHATSIMO KAPENG
Government’s bond programme, also known as the domestic note issuance programme, allows the BoB to raise debt from the local capital market on behalf of government, through the issuance of treasury bills and bonds.
The programme, which was increased from P30 billion to P55 billion in February, has become the main source of budget deficit financing for government in recent years. However, nearly all of the funding for the bond programmes comes from the local commercial banks, which are designated as primary dealers.
According to a report elsewhere in this publication, various district councils announced that a one-bedroom home now costs over P130,000 more, a near-unthinkable 32% increase. This isn't just a minor adjustment, but a devastating blow to the dream of affordable home ownership for ordinary citizens.What is most alarming is not just the scale of the increase, but the profound confusion it has exposed. Minister Ramogapi has publicly...