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Liang Eng Hwa on Government Borrowing (Miscellaneous Amendments) Bill

What is the rationale for merging borrowing limits under the Local Treasury Bills Act and the Government Securities Act, given that Treasury Bills and Government securities have different risk profiles? This was a question asked by MP Liang Eng Hwa in Parliament on Wednesday (Nov 3). He also suggested reclassifying Special Singapore Government Securities (SSGS) as Central Provident Fund (CPF) bonds, with a separate borrowing limit determined by Parliament and approved by the President. As SSGS account for a majority of Singapore Government Securities (SGS) and are non-tradable bonds held by the CPF Board, reclassifying them would prevent any impression of a high level of Government debt as well as of SGS issuance and trading volumes, he said.

Liang Eng Hwa on Government Borrowing (Miscellaneous Amendments) Bill

03 Nov 2021 03:07pm

What is the rationale for merging borrowing limits under the Local Treasury Bills Act and the Government Securities Act, given that Treasury Bills and Government securities have different risk profiles? This was a question asked by MP Liang Eng Hwa in Parliament on Wednesday (Nov 3). He also suggested reclassifying Special Singapore Government Securities (SSGS) as Central Provident Fund (CPF) bonds, with a separate borrowing limit determined by Parliament and approved by the President. As SSGS account for a majority of Singapore Government Securities (SGS) and are non-tradable bonds held by the CPF Board, reclassifying them would prevent any impression of a high level of Government debt as well as of SGS issuance and trading volumes, he said.

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