The New Zealand Debt Management Office (NZDMO) has increased its borrowing programme for the current financial year by NZ$1.5 billion, which it says is to allow for continued regular issuance.
The NZDMO, a Treasury unit which is responsible for managing the government's debt and looks set to raise NZ$1.7 billion in just two weeks, will now raise up to NZ$15 billion in the year to June 30 through sales of government bonds.
"This announcement reflects the fact that the NZDMO is significantly ahead of its projected 2010/11 debt issuance track, having already completed NZ$13.2 billion of the NZ$13.5 billion programme announced in December," NZDMO Treasurer Philip Combes said.
A further update on the bond programme will be released in conjunction with the Government’s May 19 Budget.
The NZDMO aims to raise NZ$750 million in tomorrow's bond tender.
That's on top of the record equaling NZ$950 million it raised last week after strong demand saw the value of the bonds on offer increased by NZ$500 million.
(Update adds line on tomorrow's tender).
20 Comments
Looks to me like the DMO is keep to stock up before Europe explodes and the markets freeze up again.
Make hay while the sun shines.
It won't always be shining in global bond markets...
Meanwhile Generations X and Y can watch on and wonder how on earth they will pay back NZ$1.7 bln of debt during a two week period some time in future....not mention all the blinking interest on that debt
cheers
Bernard
Well if EQC end up forced by private insurers to pay two lots of EQC payouts per claim - one for each earthquake (which is what they are angling at), then EQC will easily be on the hook for $10b+.
Throw in the billions needed for uninsured infrastructure, land remediation and lost revenue from a locked down city and even deducting reinsurance, then they will need every cent they can get.
One more event, such as a severe storm or drought destroying agricultural revenue etc or another natural disaster would leave NZ in a perilous position.
If we assume that productivity in ChCh will be down a third on a semi-permanent basis (and that's conservative) that could slice 6% off annual GDP, which was already experiencing zero growth anyway.
If they couldn't balance the books before Feb 22, with all the extra spending needed and the huge reduction in revenue what will our deficit be now??
yeh, but, if you increase taxes there is less money in the private sector and we become more dependent on the government. Its pointless transfering the cost onto the private sector. I think we need to slash state spending rervamp the councils etc., encourage private enterprise make this place attractive for investors. If you increase taxes you risk chasing capital offshore. Im thinking more tax, no way, I will remove my meager deposits to Aussie asap. Already deposit returns are below inflation. We are getting a %4.8 increase in rates and about $1,000 in one off charges, so will be an increase of over %10 for us. We have already had an increase in Gst and fuel taxes, looking at a heafty ETS charge on the way for the farm. Inflation appears to be around the %8 on what we are buying, with the increase in rates and fuel etc excluding ETS charges. Acts as a tax. I feel for the government, trying to do what has to be done and yet stay in power, a big ask for a dependent electorate used to being told the good news every three years.
Heading for dead mans corner with our foot to the floor.
Yeah but there is a limit to how much you can cut spending, do you want to end up like the states where it all goes to the private sector like the health service, but in the end everyone ends up paying around twice as much as just would have with taxes?
While the service is actually poorer.
As we have also seen with how irresponsible a lot of banks overseas have been, the private sector is definitely not always right.
Yep, a complete joke. Us Gen X'ers and Gen Y'ers have taken our extra five bucks a week and now wait for the John and Bill to tell us that they can no longer afford to provide us with health or education. I think some on this site need to think about why we needed tax-paper funded education, health, and utilities in the first place...
Amnesia of the masses.
Winston Churchill
"We contend that for a nation to try to tax itself into
prosperity is like a man standing in a bucket and trying
to lift himself up by the handle."
We are heading for trouble, from todays trolling,
USA,
Rising prices at the gas pump and in grocery aisles are starting to crimp shoppers' outlook.
The Conference Board's Consumer Confidence Index fell sharply from a three-year high in February
USA Housing
High residential vacancies are killing many housing markets, as foreclosed homes sit on the market and depress sale prices and property values.
And it's only getting worse: The national vacancy rate crept up to just over 13% according to last week's decennial census report. That's up from 12.1% in 2007.
"More vacant homes equal more downward pressure on home prices," said Brad Hunter, chief economist for Metrostudy, a real estate information provider.
Maine had the highest proportion of empty housing stock, at 22.8%. Other states with gluts of empty houses included Vermont (20.5%), Florida (17.5%), Arizona (16.3%) and Alaska (15.9%).
Obama is going to save us from peak oil,
WASHINGTON—President Barack Obama, under pressure to respond to rising gas prices, will outline Wednesday a series of initiatives to cut the nation's reliance on foreign oil, including new initiatives to expand oil production, increase the use of natural gas to power vehicles and increase production of ethanol.
John Key is probably the most dangerous man in New Zealand. Why because he does not look like one, he looks like us, he sounds like us. But he isn't like us. He is dangerous because he wants to sell us down the road. Private prisons, privatised electricity. Debt on the rise day by day. He is a banker. When he is finished finishing us off he will go back to banking. Banking and Politics today have a revolving door between them, People like Keys go from one to the other and back again. The Company where he made his millions as a middle manager went spectacularly tits up a while back. But is was nothing to do with him. Of course not he just worked there.
Serco running prisons just should not happen in NZ. Look them up, they are a really bad lot rotton to the core.
Selling off the power companies, what a joke, National are even hinting at a Bailout being needed if we don't quickly sell off the power companies. Typicla banker speak, 'You have no choice'
I think we should quickly encourage John Keys to go back to banking. Trouble is he looks and sounds like us, a bit like Price William, wasn't he nice on the telly as well. But they are not like us and if Keys only answers are more debt and sell what little we have left it is definitely time for him to go.
Pay off the government debt in full by selling up the Cullen Fund, anything left, return to NZ and invest locally. Any financial advisor would tell you to pay off debt first. So why don't we pay off the government debt? Because the Government does not want to. But it should.
Move to a land tax. GST, Company Tax even paye are all leaking badly so make the move towards a tax base that cannot be hidden or offshored.
This'll have Iain spitting tacks...... http://www.marketoracle.co.uk/Article27248.html hehe
Great news for Phil Goff....not !
"As Prime Minister John Key walked out of Ashburton College’s administration block yesterday, he was mobbed by about 20 Year 9 and 10 students.
They wanted photos of him, they wanted autographs, and one yelled “You’re way better than Phil Goff”."
http://www.ashburtonguardian.co.nz/news/ashburton-news/3794-john-key-mobbed-by-college-students.html
FYI - results here from the latest tender, the NZDMO successfully raised the NZ$750 million - http://www.nzdmo.govt.nz/securities/govtbonds/latestresults
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