Thursday 26th May 2016 |
Text too small? |
The New Zealand Debt Management Office will cut $8 billion from its issuance programme through to 2020 as the government looks set to reduce debt.
The office is slicing $2 billion from each of the next four years, due to a “lower funding requirement,” the DMO said in a statement. The office will raise $8 billion in the current financial year, falling to $7 billion in each of the subsequent four.
That will see $36 billion of new issuance over the five-year period and $31.4 billion repaid, leaving net bond issuance of $4.6 billion.
Finance Minister Bill English today unveiled his eight budget, and slashed $400 million a year from the 2017 budget new spending allowance to help repay debt.
“We turned an $18.4 billion deficit in 2011 into a $414 million surplus last year, but a tight rein on spending is still required to start repaying debt,” English said in a statement.
Net debt is seen being $62.3 billion, or 24.9 percent of gross domestic product, at June this year, lower than the $65.9 billion, or 26.9 percent of GDP, forecast six months ago. After peaking in 2018, net debt is forecast to fall back to $62.3 billion, or 20.8 percent of GDP, in 2020, down from last December’s forecast of 24 percent of GDP.
BusinessDesk.co.nz
No comments yet
SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained