Qatar set to issue local currency bonds
Qatar plans to issue local currency sovereign bonds with three and five-year maturities in 2013, reported Reuters, citing an IMF official.
"They are going to issue three- and five-year domestic government bonds in 2013. They did not mention the timing of the issuance but there will be more than one issuance and the objective is to build a domestic sovereign yield curve," A. Prasad, the IMF's mission chief for Qatar, told Reuters.
He is quoted as saying that the Government did not disclose any specific amounts or other details of the bond sales to the IMF, which concluded regular consultations with Qatar earlier this month.
Prasad reportedly said the timing of this year's bond issues was likely to revolve around maturities of previously issued debt, so that Qatar could refinance the debt.
"We have recommended to the QCB that... if there are liquidity movements and fluctuations in the short term, it would be useful to have a reverse repo instrument to absorb liquidity; they see merit in these suggestions," Prasad told Reuters. “They want to move into more open market operations, but it will take some time,"
The QCB reportedly told the IMF that its ability to engage in open market operations, which would help keep the interbank lending rate near the policy rate, was limited by a shallow interbank market and the lack of an active secondary T-bill market.
A newly established debt management office at the Ministry of Economy and Finance should help modernise policies and financing strategies, Reuters quoted the IMF as saying.
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