Indonesia buys 82.1 trln rupiah of govt bonds, first burden-sharing transaction

JAKARTA, Aug 6 (Reuters) – Indonesia’s central bank has bought 82.1 trillion rupiah ($5.63 billion) of government bonds in a private placement, the first transaction under a COVID-19 burden-sharing scheme with the government, Finance Ministry said in a statement on Thursday.

Bank Indonesia and the government had agreed on a $40 billion debt monetisation scheme, with the central bank pledging to buy $28 billion of bonds while relinquishing interest payments.

The government has promised faster stimulus spending to tackle the impact of the pandemic. The economy contracted 5.32% year-on-year in the second quarter, the first quarterly contraction in over two decades. ($1 = 14,580.0000 rupiah) (Reporting by Tabita Diela; Writing by Fransiska Nangoy; editing by John Stonestreet )

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