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South Korea To Sell 4 Trillion Won Worth Of Treasury Bills In March

By March 3, 2017 at 12:47 am
Proceeds from the Treasury bill sale will be used to frontload government expenditures in the succeeding months. (Photo : Getty Images)

As part of the South Korean government's effort to support its expansionary fiscal policy, it will sell 4 trillion won worth of Treasury bills, with the maturity of between 28 days and 63 days, in March, according to the Ministry of Strategy and Finance. 

The Treasury bills, which are usually used to raise money for the government to cover its short-term financial shortfalls, will be sold each in two separate auctions in March.

Proceeds from the sale of the Treasury bills will be used to accelerate frontloading of the government expenditures in the succeeding months.

Last month, the South Korean government said it will sell 300 billion won worth of 50-year state bonds in March as it tries to meet increasing appetite for safer assets, according to the finance ministry.

In 2016, South Korea made its maiden sale of 1.1 trillion won worth of Treasurys with 50-year maturity on the back of its strong fiscal position and solid macroeconomic fundamentals. 

Earlier this week, the finance ministry said the South Korean government spent over 22 trillion won in the first month of 2017 as part of its efforts to frontload its budget spending to boost the economy.

For the month of January, fiscal spending by the government and public institutions stood at a combined 22.4 trillion won, higher by 2 trillion won from its planned expenditure of 20.4 trillion, the ministry said.

Amid declining private consumption and increasing domestic and international uncertainties, Seoul has called for a stronger fiscal role for the government in leading the country to economic recovery.

The finance ministry earlier projected that the South Korean economy will expand 2.6 percent this year, down 0.4 percentage point from its initial growth forecast of 3 percent.

The government seeks to use over 70 percent of its 400.5 trillion won budget earmarked for 2017 in the first half of the year as it tries to cope with economic uncertainties at home and abroad. The ministry expects the balance of Treasury bills to reach 7 trillion won by the end of this month. 

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