South Korea's top economic policymaker said Wednesday that the country will gradually increase the portion of longer-term state bonds to stably finance fiscal spending.
Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, told a forum in Seoul that his ministry will gradually increase the percentage of long-term government bonds to stably finance mid- and long-term government spending and meet varying market demands.
Kim said the prolonged low rate, which has been maintained since the 2008 global financial crisis, showed signs of an upward turn across the world, noting the time will come for a close partnership to be necessary between market players and governments.
He said the time has come for fiscal expenditure to play an active role under the Moon Jae-in government, which pursues people-centered, sustainable economy, asking market players to cooperate actively with the government that was inaugurated in May.
Last year, South Korea issued 50-year government bonds for the first time in history. The country currently sells six types of state bonds with maturities ranging from three-year debts to 50-year ones. Debts that mature in three and five years account for almost half of the total government bonds.
Finance Minister Kim Dong-yeon, who doubles as deputy prime minister for economic affairs, told a forum in Seoul that his ministry will gradually increase the percentage of long-term government bonds to stably finance mid- and long-term government spending and meet varying market demands.
Kim said the prolonged low rate, which has been maintained since the 2008 global financial crisis, showed signs of an upward turn across the world, noting the time will come for a close partnership to be necessary between market players and governments.
He said the time has come for fiscal expenditure to play an active role under the Moon Jae-in government, which pursues people-centered, sustainable economy, asking market players to cooperate actively with the government that was inaugurated in May.
Last year, South Korea issued 50-year government bonds for the first time in history. The country currently sells six types of state bonds with maturities ranging from three-year debts to 50-year ones. Debts that mature in three and five years account for almost half of the total government bonds.
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