台湾省政府功能业务和组织调整涉及国库业务部分简报

台湾省政府功能业务和组织调整涉及国库业务部分简报

BySusanS.ChangDevelopmentoftheTaiwanGovernmentBondMarketDirectorGeneralDepartmentofNationalTreasuryMinistryofFinance2ContentsⅠ.IntroductionⅡ.ThePrimaryMarket:issuingand

outstandingamountsⅢ.TheStructureofPrimaryMarketⅣ.TheSecondaryMarketV.PoliciesandMeasuresⅥ.FutureOutlookⅦ.ConcludingRemarks3Ⅰ.IntroductionTheGovernmentbondsisaveryimportantinstrumenttoraisefundsforgovernmentprojectsandexpenditure.Thegovernmentbondmarketalsoplaysankeyroleinstrengtheningthefinancialsector.Inthisregard,manycountrieshavetryveryhardtodevelopasoundgovernmentbondmarket.ThesameistrueforROCgovernment.Inlasttenyears,theTaiwangovernmentbondmarketgrewveryfast,andmanypoliciesandmeasureshadbeentakentoimprovethemarket.4Ⅱ.Theprimarymarket1.HistoricaloverviewThefirstissuanceofthegovernmentbondscanbetracedto19494kindsofbondswereissuedPatriotbondShort-termBondAnnualBondConstructionBond5

TreasuryBondsSoldbytheCentralGovernment6Before1975,aspeciallawshouldbepassedaccompanyingtheannualbudgetbilltolegalizethebondissuance.In1975,Apermanentlaw“TheStatuteforIssuingCentralGovernmentConstructionBonds”waspromulgatedinsubstitutionfortheannuallaw.72.Thestatusofgovernmentbonds

Issuingamount8

Outstanding(amount)9Outstanding(aspercentageofGDP)10Ⅲ.Thestructureofprimarymarket

(June,2000)1.Maturity112.Couponratesofissuing123.BidderofissuanceBiddingqualification:authorized

centralgovernmentbondprimary

dealersThepresentauthorizeddealersinclude:Banks 19Securities Firms 38BillsFinancingCompanies 13InvestmentTrustCompanies 3134.HolderofgovernmentbondsAuthorizeddealers 50~60%Banks 35~45%Securitiesfirms 10~20%

BillsFinancingcompanies

InvestmenttrustcompaniesOthers 40~50%14Ⅳ.TheSecondaryMarketBefore1990,withgoodfiscalsituation,issuanceofgovernmentbondshadbeenverysmall.Thetransactionvolumeofstocksismorethanthatofgovernmentbonds.After1990,inordertofundmanymajorinfrastructureprojects,theissuanceofbondsincreasedsharply.Thisledtothethrivingofthesecondarymarket.From1992,except1994,thetransactionvolumeofgovernmentbondssurpassesthatofstocks.15Bonds&Stocksmarkettradingvolume16However,themajorbondtransactionisontherepurchasebasis,outrightpurchasetransactionisfew.

FY1998FY2000RepurchaseTransaction94%85%OutrightTransaction6%15%17Thetradingsystemofthesecondarymarket1.OrganizedexchangePlayers:securitiesdealers&brokersMatchingmethod:computerbiddingFee:0.1%~0.05%dependingontrading

volumeSettlement:T+2182.OTCPlayers:securitiesdealers,brokersand

investorsTradingmethod:bargaindirectlywith

dealers,orthrough“Equivalentyield

matchingsystem”automaticallymatching.Fee:freeSettlement:T+3orT+219YieldCurve20BondTrading21V.PoliciesandMeasures1.ImprovementofissuingsystemFromallocationtocompetitivebiddingFrompriceoffertointerestrateoffer2.IncreaseofvarietyofbondsIssuinglonger-termbondsIssuedfirst10-yearbondinSep22,1993Issuedfirst15-yearbondinJun16,1995Issuedfirst20-yearbondinNov24,199822Issuingzero-couponbondUsingDutchbiddingschemetoissuetwo

trenchesofzero-couponbondinOct20,

1995.3.Providingpurchasingchanneltominor

investorsFromApr.1993,2%oftheissuedamountisreservedforminorinvestors.DirectorateGeneralofPostsiscommissionedtoselltominorinvestors,through141postoffices.234.Changetobook-entrybondsInSep.1997firstbook-entrybondswasissuedsuccessfully,andasettlementbanksystemisused.UptoJune2000,NT$310billionbook-entrybondshavebeenissued.Thesettlementbanksalsoincreasedfrom7to14.SinceJan15,1999,Thetransformationofphysicalformbondstobook-entryoneshasbeenavailable.Thesettlementbanksplaytheroleaswindows.24Thepercentageofbook-entrytothetotal

outstandinggovernmentbonds254.Providingmoreissuinginformation

WorkingtowardregularissuanceMakingannouncementonthebond

issuingplaninquarterbasis265.ToincreasemarketliquiditySomesurveysshowedthatAsmallamountofasingleissuance

alwaysledtolittletransactioninthe

secondarymarketforthatissuance.Anewissuancewiththesamematurityas

lastoneoftenresultsinlowliquidityofthe

lastissuance.27MeasurestakenToseteachissuanceamountatabout

NT$30billion.Topreventissuingtwocontinuous

trenchesofbondswiththesame

maturity.Introductionofreopeningschemeis

underconsideration.28V.FutureOutlook1.Toimprovemanagementof

governmentdebt2.Tostudythepossibilityofissuance

onregularbasistoreducethenegative

impactoftheirregularissuanceonthe

monetarymarket.293.Tomakegovernmentbondsasa

benchmarkindicator.

Ataskforcewassetuptodiscussrelatedissuesandtoworkoutpossiblesolution.Issuing30-yearbondisunderstudytomeettheneedsofmarketandtohelpconstructingyieldcurveswithshort,medium,andlong-terminterestrate.304.Toattractmoreparticipationof

minorinvestorsTwomeasureswillbeintroducednextmonth:Theinformationofgovernmentbonds

willbeavailableviainternetandother

mediabythestockexchange.Minorinvestorscanpurchasenew

issuanceandtradegovernmentbondsin

thestockexchange,inadditionto