Ministry of Economy and Finance "Issuing 7.5 Trillion Won in Treasury Bonds in February... Temporarily Covering Shortage of Funds"

[Asia Economy Reporter Kim Hyunjung] The Ministry of Economy and Finance announced on the 31st that it will issue fiscal bonds worth a total of 7.5 trillion won next month.

Fiscal bonds are securities issued in the financial market to cover temporary shortages in treasury funds. They are one of the short-term borrowing methods (issuing fiscal bonds, temporary borrowing from the Bank of Korea) that must be repaid within the year.

The fiscal bonds will be issued in 63-day maturities, scheduled to be issued four times throughout February. They will be conducted through competitive bidding targeting Monetary Stabilization Bonds bidding institutions (20), government bond primary dealers (17), reserve government bond primary dealers (5), and treasury fund management institutions (3).

The issuance limit for fiscal bonds and temporary borrowing from the Bank of Korea this year is 30 trillion won. The cumulative amount of fiscal bonds issued through the four issuances is 7.5 trillion won.

The Ministry of Economy and Finance stated, "We will thoroughly manage to prevent unnecessary idle funds or shortages by continuously monitoring real-time revenue and expenditure and managing fund status. For temporary fund shortages caused by timing differences between revenue and expenditure, we plan to actively support fiscal execution by timely raising and supplying funds through issuing fiscal bonds, etc."

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