3
4.
As at the close of business today, the total
amount of debt certificates issued by the Exchange Fund in
return for money transferred from the General Revenue
Account and the various funds, in other words the total
borrowing by the Exchange Fund from these sources, will be
$[26.9] billion. Borrowing arising from money market
operations will amount to an additional $2.9 billion,
making a total of $[29.8] billion, just short of the
borrowing limit of $30 billion.
5.
As I mentioned earlier, the Government's fiscal
reserves are expected to total around $32 billion by the
end of this financial year. Over the succeeding few
months these are likely substantially to exceed that
figure in view of the seasonal inflow of revenue and the
large turnover in our public finances which on General
Revenue Account total around $90 billion and on
Consolidated Account total well over $100 billion in the
next financial year.
6.
The current borrowing limit of $30 billion is,
therefore, likely severely to constrain the ability of the
Exchange Fund to continue to take in these fiscal reserves
by the issue of interest-bearing debt certificates.
It
/will also