tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

Investments

rss
Latest Headlines

Govt may widen range of debt securities

The government is keen on resuming the issuance of inflation-indexed bonds and is considering increasing the range of debt securities offered by the New Zealand Debt Management Office.  

Friday, February 19th 2010, 12:58AM

by Paul McBeth

 

In its 28-page response to the Capital Market Development taskforce's 60 recommendations, Commerce Minister Simon Power said consultation would take place this month with a view to recommence issuance inflation-indexed bonds by May. The security was introduced in 1996 and suspended three years later, though Eriksen & Associates managing director Jonathan Eriksen vouched for their return early last year.

The government document said it would give ongoing consideration to longer-term debt and foreign currency debt as other options to raise money, and potential retail issues would be investigated along with why there was a lack of participation in government debt products.

One way the government hopes to entice investment from offshore investors is by cutting the 2% approved issuer levy for some public issues of debt to zero. The government expects to report back in the second half of the year on the proposal, for a possible inclusion in a tax bill later this year.

The paper supported the recommendation to develop a local government bond bank, with work already underway, though the large number of partners has ensured it is a slow progress. Finance Minister Bill English, who has responsibility for these two matters, will make a final decision on a bond bank by the end of next month.

The Debt Management Office, which raises money for the government through the sale of debt securities, has brought forward its bond programme to take advantage of historically low interest rates as the government cut back its overall debt programme over the coming four years.

 

Paul is a staff writer for Good Returns based in Wellington.

« Small finance companies likely to be forced out: KPMGGeneva considers its future - again »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    17 hours ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    3 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    4 days ago by Pragmatic
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com