TAIWAN CABINET APPROVES INCREASE IN BOND ISSUES
The cabinet has approved a finance
ministry plan to raise the amount of outstanding government
bonds as a percentage of the total budget in financial year
1987/88 starting July 1, to meet growing demand for funds for
major construction projects, a cabinet official said.
    The increase would allow outstanding bonds to total 40 pct
of the 1987/88 budget, up from 25 pct in the current year.
    He said the increase would allow the government to issue
bonds worth up to about 105 billion Taiwan dlrs in the next
financial year, up from 49.6 billion in the current year. The
proposal will go to parliament for final approval.
    A finance ministry official told Reuters the increase in
bond issues was necessary to finance 14 major projects,
including highways, power plants, an underground railway and a
receiving terminal for liquefied natural gas.
    Spending on major projects is expected to total more than
120 billion Taiwan dlrs in 1987/88, compared to 89 billion in
the current year, he said.
 REUTER
