SEOUL– South Korea plans to sell 12.5 trillion won (US$10.9 billion) in government bonds next month, the finance ministry said Thursday.
The ministry will issue 1 trillion won in Treasurys with a two-year maturity, 2.5 trillion won in Treasury bonds with a maturity of three years and 2.2 trillion won in five-year government bonds, according to the Ministry of Economy and Finance.
The sales of longer-dated bonds will include 3.15 trillion won in 30-year Treasury notes and 400 billion won in state debts with a maturity of 50 years.
South Korea issued 17.9 trillion won in state bonds in July.
The country plans to sell government bonds worth a total of 176.4 trillion won this year as it seeks to finance fiscal spending to cope with the pandemic.
The ministry added it plans to buy back Treasury bonds next month to repay 2 trillion won in government debt. Details will be announced later.
When drawing up this year’s second extra budget in June, the government said it will spend 2 trillion won in repaying part of the national debt with excess tax revenue.
The National Assembly approved an extra budget of 34.9 trillion won last week, larger than the government’s proposed budget of 33 trillion won, in a bid to provide pandemic relief funds to small merchants and people in the bottom 88 percent income bracket.
Source: Yonhap News Agency