TREASURY BILLS

The Minister for Finance (Dr Richard Hu Tsu Tau): Mr Deputy Speaker, Sir, I beg to move,

That this Parliament, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72), resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore six thousand million dollars.

Sir, on 7th March, 1972, Parliament resolved, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72), that the Minister be authorized to borrow by the issue of Treasury Bills in Singapore a sum not exceeding $3,000 million.

Since 1972, the demand for Treasury Bills has grown with the increasing number of banks and other financial institutions setting up business in Singapore. This demand for a short-term investment instrument is expected to increase further with changes in the liquidity requirements for banks and the activation of the Government securities market. The authority of Parliament is therefore requested to enable the Government to issue Treasury Bills up to an amount not exceeding $6,000 million. These Bills would have maturity of one year or less.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Parliament, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72), resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore six thousand million dollars.