TREASURY BILLS

The Acting Minister for the Environment (RAdm Teo Chee Hean): Mr Speaker, Sir, I beg to move,

That this Parliament, in accordance with section 3 of the Local Treasury Bills Act (Chapter 167), resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore ten thousand million dollars.

Sir, on 26th March 1987, Parliament resolved, in accordance with section 2 of the Local Treasury Bills Act (Chapter 72) [current reference would now be section 3 of the Act (Chapter 167)], that the Minister be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding $6,000 million. Since 1987 the demand for Treasury Bills has grown rapidly. The liabilities base of the banks is expected to expand further due to continued strong economic growth and large capital inflows. This would increase banks' demand for Treasury Bills as liquid assets. The present limit of $6,000 million is likely to be insufficient to meet the additional demand. The authority of Parliament is therefore requested to enable the Government to issue Treasury Bills up to an amount not exceeding $10,000 million.

Sir, I beg to move.

Question put, and agreed to.

Resolved,

That this Parliament, in accordance with section 3 of the Local Treasury Bills Act (Chapter 167), resolves that the Minister for Finance be authorised to borrow by the issue of Treasury Bills in Singapore a sum not exceeding Singapore ten thousand million dollars.