rg) -- Australia’s parliament passed legislation to set up guarantees that may cover as much as A$39 billion ($31 billion) of state governments’ debts and set up a public register of government borrowings.The bill passed in Canberra today after the lower house of parliament approved Liberal Senator Helen Coonan’s amendment to set up an on-line guide that the Australian Office of Financial Management will update each month.
Australian states’ borrowing costs have dropped since Treasurer Wayne Swan announced the federal guarantee on March 25 as tax revenue slumped amid a slowing global economy. The premium investors demand to hold Queensland debt rather than federal notes dropped to 0.62 percentage point today from 1.39 percentage points before Swan introduced the plan. The spread for New South Wales debt narrowed to 0.61 percentage point from 1.27 percentage points in the same period.
Queensland Treasury Corp. today said it sold A$3.25 billion of bonds due in 2019 today. The 6.25 percent notes were priced to yield 84 basis points more than similar-maturity government debt, according to a statement from Queensland Treasury Corp. Deutsche Bank AG, RBC Capital Markets and UBS AG managed the sale, according to the statement.
New South Wales forecast an A$1.34 billion deficit in the year ending June 30, while Queensland said its operating deficit would amount to A$1.95 billion. The states, the nation’s biggest local government borrowers, have indicated they will use the federal guarantee.
The planned borrowings of the four largest states -- New South Wales, Victoria, Queensland and Western Australia -- will amount to A$44 billion for 2009-2010, near the Federal government’s A$60-billion requirement, according to National Australia Bank Ltd.
State governments’ borrowing costs swelled in late 2008 after banks started selling bonds under an Australian government guarantee.
For further details visit as : www.bloomberg.com/apps/news?pid=20601081&sid=ar6g3Kn3i77c
Australian states’ borrowing costs have dropped since Treasurer Wayne Swan announced the federal guarantee on March 25 as tax revenue slumped amid a slowing global economy. The premium investors demand to hold Queensland debt rather than federal notes dropped to 0.62 percentage point today from 1.39 percentage points before Swan introduced the plan. The spread for New South Wales debt narrowed to 0.61 percentage point from 1.27 percentage points in the same period.
Queensland Treasury Corp. today said it sold A$3.25 billion of bonds due in 2019 today. The 6.25 percent notes were priced to yield 84 basis points more than similar-maturity government debt, according to a statement from Queensland Treasury Corp. Deutsche Bank AG, RBC Capital Markets and UBS AG managed the sale, according to the statement.
New South Wales forecast an A$1.34 billion deficit in the year ending June 30, while Queensland said its operating deficit would amount to A$1.95 billion. The states, the nation’s biggest local government borrowers, have indicated they will use the federal guarantee.
The planned borrowings of the four largest states -- New South Wales, Victoria, Queensland and Western Australia -- will amount to A$44 billion for 2009-2010, near the Federal government’s A$60-billion requirement, according to National Australia Bank Ltd.
State governments’ borrowing costs swelled in late 2008 after banks started selling bonds under an Australian government guarantee.
For further details visit as : www.bloomberg.com/apps/news?pid=20601081&sid=ar6g3Kn3i77c
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