Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


BUDGET 2013: NZDMO trims $3 bln from borrowing programme

BUDGET 2013: Debt Management Office trims $3 bln from borrowing programme

By Paul McBeth

May 16 (BusinessDesk) – The New Zealand Debt Management Office will cut its borrowing programme by $3 billion over the next two years as the government looks to clamp down on its growing interest bill and build a buffer for future shocks.

The DMO will cut its short-term Treasury bills on issue by $1 billion in the 2013/14 financial year and will reduce bond issuance by $2 billion the following year, the department said in a statement. The office expects net borrowing of $9 billion in the current financial year, a $3 billion reduction next year, and net issuance of $5 billion and $7 billion the following two years.

The government department will focus on extending the duration of the Crown’s debt portfolio, and is mulling launching two longer-dated bonds as art of this year’s programme. Maturities being considered are an April 2027 and a September 2030 inflation-indexed bond.

New Zealand debt has been an attractive option for foreign investors, with higher yields on offer in a global environment of low interest rates. Reserve Bank figures this week showed non-resident holdings of government securities were at 66 percent last month, the highest proportion since November 2008.

The government’s net debt is forecast to rise to $70.3 billion, or 27 percent of GDP, at the end of the 2017 year, from $57.9 billion in 2013. It expects to show a cash surplus of $1.8 billion in the 2016 year, though after capital requirements it will be in a residual cash deficit through the forecast period.

“This year we’re paying interest on our debt of $3 billion,” Finance Minister Bill English said in a briefing in Wellington. “We need to lower our debt to absorb the chance of another shock.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


  • Bill Bennett on Tech