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

 

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news