The 2012-13 Budget has launched last week. Financial Secretary John Tsang Chun-wah proposed to issue as much as HK$10 billion worth of iBond - an inflation-linked debt paper - with three-year maturity. The yield will be equivalent to the average inflation rate over the previous six months. And only Hong Kong residents are eligible to subscribe.
However, Now TV finance commentator Chiu Sin Chun expressed his worries on iBond. He said that iBond would be an option for coping with inflation, but it will be more effective only if the government increases investment.
“The government would rather save collected funds in treasury than investment,” Chiu said “The investors will be benefited from the [debenture interest -? What is this?] that taxpayers pay for.”
He criticized the issuance of iBond may carry out unfairness. “The bonds will only benefit investors but it helps nothing to the public, “He added. [Why only investors?]
The government forecasts headline inflation of 3.5% in the coming fiscal year. As the first batch of iBond was issued and oversubscribed last year, the overwhelming response will help for the subscription of the new batch.
--095114 2012年2月7日 (二) 22:11 (UTC)
[Whta would be a better way?]
[Grade: C+]
