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

 


BUDGET: NZDMO to lift bond issuance $3B on slow cash surplus

BUDGET: NZDMO to lift bond issuance $3B as return to cash surplus delayed

By Paul McBeth

May 15 (BusinessDesk) - The New Zealand Debt Management Office will lift issuance by $3 billion over the coming four years on a slower forecast return to cash surplus.

The DMO will raise $8 billion in 2014/15, and $7 billion each of next three years, with an extra $1 billion to be issued in 2015, 2017 and 2018, it said in a statement. The office will repay a net $2.2 billion in 2015 and $4.5 billion in 2018, with net issuance of $5.1 billion and $6.8 billion in 2016 and 2017.

The Treasury estimates the government's residual cash balance will return to surplus in 2018, at $710 million, a year later than in the December half-year economic and fiscal update. The forecast shortfall over the four-year horizon of $9.4 billion is up from a previous expectation of $4.4 billion.

The smaller and slower return to a residual cash surplus was due to higher operating allowances and lower tax receipts than forecast, and prompted the increased issuance.

The government's tax take, while rising, has lagged estimates with later than expected corporate annual returns, and lower tobacco excise than anticipated.

Still, the government's net debt is forecast to continue decline relative to gross domestic product, falling to 23.8 percent by 2018 from 27.6 percent as at March 31.

The DMO is planning a 2027 bond and a new inflation-indexed bond in the first half of 2014/15 subject to market condition. The inflation linked bond will make up $3 billion of the 2014/15 issuance.

The office also intends to keep repurchasing the April 2015 nominal bond in the 2015 fiscal year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news