Public Debt (Government Bonds & Treasury Bills)

NZ Government bonds and Treasury bills (NZ Government debt), are written promissory agreements, stating that the cost of purchasing these documents from the Government, will be repaid with applicable returns over the terms specified.

Sold only in NZD's, to the value declared by the NZ Government, new NZ Government bonds and Treasury bills can only be bought, with the bank notes provided from NZ’s sole issuer of NZ's bank notes and coins (the Reserve Bank of NZ).

And as new NZ Government bonds and Treasury bills, are sold by Government tender through the New Zealand Debt Management Office, more NZ Government debt can be purchased, with more of NZ's bank notes at the next NZDMO auction.

Also with NZ's Government(s) being the “full faith and credit”, of these central and local Government debts, is why banks consider the purchase of NZ Government(s) securities, (please click here and scroll down to registered banks) as highly secure investments.

Author: Dean N Bonkovich

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