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Countries need to boost gov't bond markets: Seoul official
제목 없음 South Korea and other countries need to further develop their state debt markets in order to better meet increasing financial demand from fast-aging populations, a senior economic policymaker here said Wednesday.

   "Given the declining growth potential and aging populations, government spending is projected to increase in the future," Vice Finance Minister Yoo Sung-kull told a forum in southern Seoul. "We need to further develop government bond markets to secure fiscal resources for the future."

   Yoo also noted that countries have to keep up their efforts to enhance the "international credibility, suitability and transparency" of their fiscal statistics in order to prevent fiscal crises in the future.

   He made the remarks in his welcoming speech at the Public Debt Managers' Forum jointly held by the finance ministry here and the International Monetary Fund. He is in charge of the ministry's budget affairs.

   The two-day gathering will spend the majority of the time discussing capital market situations and other risk factors that could affect individual countries' debt management. It was attended by government debt managers and private investors from all over the world.

   Reviewing South Korea's efforts to survive the latest global financial crisis by expanding fiscal spending, Yoo said that the government debt here still remains "at a manageable level" compared with other advanced countries.

   But he noted that the nation needs to brace for increased spending down the road from aging populations and corporations' debt. To that end, he emphasized that the government should remain "strongly committed" to enhancing fiscal soundness by extending its tax base and promoting expenditure productivity.

Source: Yonhap News ( June 22, 2011)

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