BI to dominate ownership of ‘pandemic bonds’ as debt burden grows

first_imgThe government will issue nearly Rp 450 trillion (US$27.21 billion) worth of the so-called pandemic bonds to finance the country’s efforts to combat the health crisis and economic turmoil caused by the COVID-19 pandemic, according to a Finance Ministry document.Apart from the pandemic bonds, the government is also planning to increase its bond sales target by Rp 160.2 trillion to Rp 549.6 trillion to address the widening budget deficit, which could reach 5.07 percent of gross domestic product (GDP).[RA::Indonesia to issue Rp 450 trillion in ‘pandemic bonds’ to finance COVID-19 fight::https://www.thejakartapost.com/news/2020/04/06/indonesia-to-issue-rp-450-trillion-in-pandemic-bonds-to-finance-covid-19-fight.html]Indonesia raised $4.3 billion from global bonds on Monday, including the longest-dated US dollar bond ever issued by an Asian nation, Reuters reported. The deal was finalized in the US and sold in maturities of 10.5 years and 30.5 years, worth $1.65 billion each, with a 50-year tranche worth $1 billion. It was Indonesia’s largest-ever bond. Bank Indonesia (BI) will dominate ownership of the nation’s “pandemic bonds” as the government seeks to safeguard the economy from COVID-19 at the risk of a rising debt burden, including from its longest ever 50-year bond tenure, economists say.Bank Permata chief economist Josua Pardede said that foreign investors would be reluctant to buy risky assets including Indonesia’s sovereign debt papers amid the current market routs.“The financing of pandemic bonds may be dominated by the central bank as foreign investors tend to avoid risky assets,” Josua told The Jakarta Post during a phone interview. “We expect that this will speed up the recovery of economic sectors affected by the COVID-19 pandemic.” “The debt burden will rise, but it will not surpass the legal debt-to-GDP ceiling ratio of 60 percent,” Center of Reform on Economics (Core) Indonesia research director Piter Abdullah told the The Jakarta Post.The government’s decision to issue a 50-year global bond will create unnecessary risks as the government must pay a high interest rate for a long period of time, he added.“A 50-year global bond is meant to provide buyers with incentives as their investment appetite has significantly declined amid the global uncertainties caused by the virus,” Piter said, adding that he opposed the government’s decision to issue such a bond because of payment difficulties.“This increases the risk for the government to pay debts with higher interest rates as it has a better option to issue debt papers in rupiah that can be bought by the central bank using a quantitative easing scheme.”Under the new Government Regulation in Lieu of Law (Perppu) No. 1/2020 issued last week, Bank Indonesia (BI) is now permitted to buy government bonds at auction to anticipate if the market is unable to fulfil the government’s financing target. The regulation revokes a 1999 law on the central bank, which only allowed BI to buy government bonds in the secondary market.Read also: Indonesia announces Rp 405 trillion COVID-19 budget, anticipates 5% deficit in historic movePresident Joko “Jokowi” Widodo has announced Rp 405.1 trillion in extra state spending to finance Indonesia’s battle against the novel coronavirus, specifically for healthcare, social safety net and business recovery programs.“However, we expect the debt-to-GDP ratio to increase to around 34 to 35 percent this year, from last year’s figure of 29.8 percent,” Josua said. “Inflation may also rise as the central bank bought government debt papers, but it will still remain within BI’s target.”Anugrah Sekuritas Indonesia fixed income analyst Ramdhan Ario Maruto said that international rating agencies may downgrade Indonesia’s sovereign credit rating, following rating downgrades on Indonesian companies.Fitch and Moody’s did not immediately respond upon being asked for comment by the Post.Indonesia’s sovereign credit rating from the three top rating agencies currently stands at the lower-end of the investment grade, which allows a full range of institutions worldwide to invest in the country’s debt papers. Any downgrade would return the country’s rating to junk, which would result in only select investors being eligible to invest in the country’s financial assets.“As long as the government can maintain the country’s debt-to-GDP ratio at a safe level, I think the rating agencies would at least affirm our ratings even during times of hardship like today,” said Ramdhan.Topics :last_img read more

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LETTERKENNY ATHLETIC CLUB EASTER 3K RESULTS

first_imgL.A.C. Easter Sunday 3k 2013Place Race No. Time FirstName Surname Club1 1558 9.16 Declan Reid – City Of Derry 2 1589 9.20 Owen Mc Ginley – Cranford A C3 1584 9.21 Gerard Gallagher – Finn Valley A C4 1544 9.22 Patrick Hamilton – City Of Derry5 1550 9.23 Emmet McGinty – City Of Derry 6 1541 9.25 Chris Mc Guiness – Foyle Valley7 1580 9.27 Sean McGettigan – Finn Valley A C8 1559 9.27 Gary Slevin – City Of Derry9 1542 9.30 Peter Gibbons – Letterkenny A C10 1556 9.33 Paul Mc Cafferty – City Of Derry 11 1549 9.45 Nick Cassidy – City Of Derry12 1503 9.51 Ivan Toner – Letterkenny A C13 1591 9.54 Conor Morrison – Letterkenny A C14 1551 9.55 Ciaran Carlin – Finn Valley A C 15 1557 10.00 Kevin Ferry – Letterkenny A C16 1563 10.11 Oisin Gallen – Finn Valley A C17 1576 10.21 Paddy McDaid – Individual18 1502 10.25 Barry Meehan – Letterkenny A C19 1501 10.25 Ciaran Crawford – Letterkenny A C20 1585 10.26 Aidan McKena – Letterkenny A C21 1565 10.27 Padraig Friel – Letterkenny A C22 1568 10.28 Pauric Breslin – Individual23 1583 10.32 Tom Thompson – Finn Valley A C24 1505 10.38 Zac Mc Gowan – City Of Derry25 1564 10.39 Raymond Birch – Letterkenny A C26 1570 10.41 Pádhraig Patton – Finn Valley A C27 1545 10.41 Liam Murray – Individual28 1504 10.46 Paul Toner – Letterkenny A C29 1597 11.04 Shane Gallagher – Individual30 1567 11.07 Paul McMonagle – Letterkenny A C31 1506 11.18 Michael Penrose – Finn Valley A C32 1509 11.21 Paddy Ward – Letterkenny A C33 1590 11.26 Ciaran O Donnell – Letterkenny A C34 1560 11.29 Darren Price – Individual35 1569 11.47 Seamus Nallen – Individual36 1588 11.53 Paul Catterson – Individual37 1561 11.54 Drew Doherty – Finn Valley A C38 1582 12.02 Cathall Harvey – Individual39 1566 12.11 Kieran Coyle – Letterkenny A C40 1543 12.17 Hanah Mc Gowan – City Of Derry41 1573 12.21 Barry Gallagher – Individual42 1596 12.23 Gillian Marley – Milford A C43 1574 12.38 Ciara Finnegan – Letterkenny A C44 1555 12.42 Anthony Murray – Individual45 1554 12.58 Seamus Crossan – Individual46 1595 13.00 Noel McBride – Individual47 1572 13.02 Sean O Donnell – Individual48 1571 13.14 Eunan McBride – Letterkenny A C49 1598 13.43 Niamh McDaid – Letterkenny A C50 1581 14.23 Rhona Wherity – Individual51 1552 14.25 Annaali Kelly – Individual52 1562 14.28 Ollie Harvey – Individual53 1546 14.30 John Curran – Individual54 1587 14.30 Colm McDaid – Individual55 1594 14.46 Darragh Morrison – Letterkenny A C56 1592 14.46 Seamus Morison – Letterkenny A C57 1508 14.49 Anna Mc Fadden – Individual58 1586 15.49 James Green – Individual59 1548 16.17 Julie McGoohan – Individual60 1547 16.17 Jane Mcgoohan – Individual61 1507 16.19 Denis Mc Fadden – Individual62 1593 17.40 Marjorie Morrison – Letterkenny A C63 1553 18.20 Aoibhinn Boyd – Individual64 1575 18.20 Donna McBride – IndividualTotal Runners: 64LETTERKENNY ATHLETIC CLUB EASTER 3K RESULTS was last modified: March 31st, 2013 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:Easter 3kLetterkenny AClast_img read more

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