Recovery Bond: Government’s Last Resort for Corporations
The government is preparing alternatives for the source of funds to provide additional liquidity for businesses that have been affected by the rapidly-spread Covid-19 pandemic. Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, said one of the planned options is the issuance of new debt securities called recovery bonds.
Later, the government will offer the rupiah-denominated bond to Bank Indonesia (BI) or private investors. Proceeds from the bond sales are channeled to corporations that need liquidity in the form ultra-low rates loan.