Question No. 722
Dr DT George (Democratic Alliance) to ask the Minister of Finance:
(1) Whether particular investment vehicles to be offered by the government into which a percentage of pension fund assets should be invested have been designed; if not, why not; if so, what are the relevant details;
(2) Whether a bond instrument made available for this purpose will increase the government's debt; if so, (a) by how much and (b) what will the impact be (i) on debt servicing costs and (ii) on the fiscal framework?
Reply:
1. No. Deep and liquid domestic financial markets, strengthened over the previous decade, currently ensure the availability of funding to finance government's borrowing requirement.
2. No. Government's borrowing requirement has been determined through the due process prescribed in law. It is now being considered by Parliament.
Issued by: National Treasury
12 March 2010
