BI buys $15.7b in govt bonds to support economy

first_imgBank Indonesia (BI) has bought Rp 234.65 trillion (US$15.77 billion) worth of government bonds under the “burden sharing” scheme to fund the widening fiscal deficit, pledging continued support for the sluggish economy.Of the total figure, the central bank has bought Rp 51.17 trillion worth of sovereign debt papers (SBNs) through auctions, as well as another Rp 183.48 trillion through private placement as of Sept. 15, BI Governor Perry Warjiyo said during a meeting with House of Representatives Commission XI overseeing financial affairs on Monday.On that basis, BI currently owns Rp 640.6 trillion worth of SBNs. The pandemic pushed the economy into a contraction of 5.32 percent in the second quarter. Finance Minister Sri Mulyani Indrawati said the government had revised down its GDP outlook to an annual contraction of between 0.6 and 1.7 percent as the uncertainty surrounding the pandemic had taken a significant toll on consumption and business investment.Consumption, which accounts for more than half of the nation’s GDP, is now expected to remain weak and to contract between 1 and 2.1 percent, while investment is expected to shrink between 4.4 and 5.6 percent as demand and economic activity remain cool.The economy has shown substantial improvement in the third quarter compared to the second quarter as reflected by the purchasing managers’ index (PMI) and retail sales data, Perry went on to say. However, he also said the recovery remained slow amid the uncertainty surrounding the pandemic.“Although the coronavirus pandemic has limited economic activity, we have seen signs of improvement in people’s mobility and economic activity,” he said. “The fiscal and monetary stimulus will help avoid significant deterioration in economic activity going forward.BI has trimmed the policy rate four times this year by 1 percentage point in total, cut the reserve requirement ratio, eased lending rules and undertaken quantitative easing to support the economy. The central bank has disbursed Rp 662 trillion in quantitative easing measures.The burden sharing scheme between the fiscal and monetary authorities would lower the government’s debt burden going forward, the Finance Ministry’s financing strategy and portfolio director Riko Amir said, adding that the debt-to-GDP ratio would be slightly lower than 40 percent of GDP, “which will be lower compared to other emerging countries”.“This will mean the government has sufficient fiscal space to allocate spending in priority sectors post-pandemic,” he told The Jakarta Post recently. “The government will continue to increase state revenue and create efficiency in expenditure to control the debt growth.” However, credit rating agency Moody’s Investor Service said Indonesia’s accumulated debt and falling tax revenue would weaken its “debt affordability” and might deteriorate its credit quality.Debt affordability is a means of measurement used by Moody’s, calculated by the ratio of annual interest payments required to maintain a government’s debt to its annual tax revenues.Although the deterioration in debt affordability will be modest in general for emerging markets, Indonesia will have interest payments to account for more than 20 percent of government revenue, the agency stated.“We are not expecting a reversion to pre-coronavirus deficit levels in Indonesia until at least 2025,” Moody’s senior analyst Anushka Shah said on Sept. 16.Topics : “This is our commitment to support the economy through financing measures and bearing the debt burden so that the government can focus on spending the state budget,” Perry told the lawmakers, stressing that the central bank would continue buying government bonds through the scheme.The government and the central bank have agreed on a $40 billion debt monetization scheme, dubbed “burden sharing”, which will see BI buying at least $28 billion in government bonds while shouldering the debt costs.The coronavirus-induced economic downturn has sapped tax revenue, spurred government spending and necessitated record amounts of government borrowing as the country’s budget deficit may widen to 6.34 percent of gross domestic product (GDP), more than twice the initial deficit cap of 3 percent.The government, however, has only spent around 36 percent of the Rp 695.2 trillion stimulus it allocated to help the economy due to red-tape, among other issues.last_img read more

Gov. Wolf, Sen. Casey Announce $3 Million in State Funding for New Project HOME Facility in Philadelphia

first_img SHARE Email Facebook Twitter Gov. Wolf, Sen. Casey Announce $3 Million in State Funding for New Project HOME Facility in Philadelphia Equality,  Press Release Philadelphia, PA – Governor Tom Wolf and Senator Bob Casey today announced a $3 million grant to help fund the construction of a new Project HOME building with LGBTQ-friendly affordable housing units for young adults who are homeless or at risk of homelessness.“Nationwide, 40 percent of homeless young adults identify as LGBTQ, and we know that without early interventions to educate, employ, and empower homeless youth, and without a stabilizing force in their lives, it becomes incredibly hard to break the cycle they are caught in,” Governor Wolf said. “This project will target that population, giving them a place to stay and access to critical services that they need to get back on their feet in a time of intense need.”“Our nation has a deep and abiding obligation to the most vulnerable, a mission Project HOME fulfils daily,” Senator Casey said. “Earlier this year I called for additional resources to combat homelessness, particularly among children. I worked to help secure this grant so that more children in Southeastern Pennsylvania will be able to have this basic measure of security. This grant will also ensure that LGBTQ youth have an opportunity to reside in a secure and affirming environment.”The $3 million Redevelopment Assistance Capital Program (RACP) funding will go toward construction of a four-story, 36,000 square-foot building at 1315 N. 8th Street in the Kensington section of the city. It will include 30 one-bedroom units of affordable housing targeted to young adults (age 18-25) who are homeless, have experienced homelessness, or are at risk of homelessness (including those aging out of foster care), and will be LGBTQ-friendly. Residents will benefit from a combination of housing, employment, education and health care-related services, as well as case management, life skills and community-building activities.“Project HOME is very grateful for the partnership with Governor Wolf and the Commonwealth of Pennsylvania,” said Sister Mary Scullion, President and Executive Director of Project HOME. “With their extraordinary leadership, the $3 million RACP grant will leverage an estimated $13 million in total direct capital investment to support phase one of a two part, $27 million project at 8th and Thompson Streets. The first phase is 30 units of LGBTQ-friendly housing for homeless and at-risk young adults. We will continue our work with the broader community because none of us are home until all of us are home.”Project HOME plans to break ground in the spring of 2017. Construction is expected to be complete by the spring of 2018.Like Governor Tom Wolf on Facebook: Facebook.com/GovernorWolfcenter_img October 21, 2016last_img read more

Watch as Pepe dribbles for 14 seconds in Olympiacos box without passing to Arsenal mates’ frustration [VIDEO]

first_img“I think we have enough goal threat in this team but we have to put our chances to bed,” Arsenal boss Arteta when asked specifically about Pepe’s performance in his post-match press conference.Pepe madness pic.twitter.com/70EdR9oW0b— Karim (@Piateknique) February 27, 2020Arsenal fans were frustrated as well with many feeling that he tried to do a little too much. I’d say that’s too much of show off right there.— Hairy Macancheese (@macncheese065) February 28, 2020 Beautiful nonsense— jamil (@SidiMilu) February 28, 2020 Decision making is bad, should have shot or pass.— ɭeo (@afc_al) February 28, 2020center_img waay too much— Karim (@Piateknique) February 27, 2020 Arsenal winger, Nicolas Pepe is undoubtedly a technically-gifted player and a talented dribbler who isn’t shy of trying to beat opposition defenders.That’s what drove Arsenal to sign the player from Lille last summer for £72m.More average performances than good so far this season have left the patience of Arsenal fans to the Ivorian’s on-pitch antics a little thin.Improved performances under new manager Mikel Arteta appeared to have got fans of the Gunners warming up to him.Those feelings of frustration with the young winger returned fully during Arsenal’s Europa League exit at the hands of Olympiacos on Thursday night.With Arsenal 1-0 down at home on the night and looking for a goal to take them ahead on aggregate in the 74th minute, Pepe controlled a ball on the left, beat one man and entered the box,He then twisted and turned four times in the box, spurning a number of chances to cut the ball to a teammate – there were three of them in the box with him.After the fourth turn, the defenders crowded around Pepe and got it clear for a corner.This piece of play visibly frustrated strikers, Pierre-Emerick Aubameyang and Alexandre Lacazaette who were hoping for a cutback.See the sequence below:last_img read more