By Susan S. Chang.ppt

台灣省政府功能業務與組織調整涉及國庫業務部分簡報 Director General Department of National Treasury Ministry of Finance Taiwan, R.O.C Contents Ⅰ . Introduction Ⅱ . The Primary Market: issuing and outstanding amounts Ⅲ . The Structure of Primary Market Ⅳ . The Secondary Market V. Policies and Measures Ⅵ. Future Outlook Ⅶ.Concluding Remarks Ⅰ . Introduction The Government bonds is a very important instrument to raise funds for government projects and expenditure. The government bond market also plays an key role in strengthening the financial sector. In this regard, many countries have try very hard to develop a sound government bond market. The same is true for ROC government. In last ten years, the Taiwan government bond market grew very fast, and many policies and measures had been taken to improve the market. Ⅱ . The primary market 1. Historical overview The first issuance of the government bonds can be traced to 1949 4 kinds of bonds were issued Patriot bond Short-term Bond Annual Bond Construction Bond Treasury Bonds Sold by the Central Government Before 1975, a special law should be passed accompanying the annual budget bill to legalize the bond issuance. In 1975, A permanent law “The Statute for Issuing Central Government Construction Bonds” was promulgated in substitution for the annual law. 2. The status of government bonds Issuing amount Outstanding (amount) Outstanding (as percentage of GDP) Ⅲ. The structure of primary market(June, 2000) 1.Maturity 2. Coupon rates of issuing 3. Bidder of issuance Bidding qualification: authorized central government bond primary dealers The present authorized dealers include: Banks 19 Securities Firms 38 Bills Financing Companies 13 Investment Trust Companies 3 4. Holder of government bonds Authorized dealers 50~60% Banks 35~45% Securities firms 10~20% Bills Financing companies  Investment trust companies Others 40~50% Ⅳ . The Secondary Market Before 1990, with good fiscal situation, issuance of government bond