KONTAN.CO.ID - JAKARTA. Indonesia's central bank has agreed to buy 574.59 trillion rupiah ($40 billion) of government bonds this year and rebate most of the yield to help fund the economic recovery, Finance Minister Sri Mulyani Indrawati said on Monday. The bond-buying programme will help finance the 2020 fiscal deficit, which is forecast to reach 6.34% of GDP this year, as the government steps up spending to fight the virus outbreak while revenue drops. Some 397.56 trillion rupiah of bonds will finance public interest programmes and the cost will be fully borne by the central bank, Indrawati said. The rest will carry interest rates below the central bank's 3-month reverse repurchase rate and will support recovery schemes for some businesses, she said.
Indonesia unveils $40 billion bond scheme to fund recovery from pandemic
KONTAN.CO.ID - JAKARTA. Indonesia's central bank has agreed to buy 574.59 trillion rupiah ($40 billion) of government bonds this year and rebate most of the yield to help fund the economic recovery, Finance Minister Sri Mulyani Indrawati said on Monday. The bond-buying programme will help finance the 2020 fiscal deficit, which is forecast to reach 6.34% of GDP this year, as the government steps up spending to fight the virus outbreak while revenue drops. Some 397.56 trillion rupiah of bonds will finance public interest programmes and the cost will be fully borne by the central bank, Indrawati said. The rest will carry interest rates below the central bank's 3-month reverse repurchase rate and will support recovery schemes for some businesses, she said.