US, WASHINGTON (ORDO NEWS) — The US Treasury Department plans to place bonds for private investors with a total volume of almost $ 3 trillion for the second quarter of the year to cover the costs of combating the spread of a new type of coronavirus. This is stated in a statement released on Monday by the department.
“In the quarter from April to June 2020, the Treasury expects to borrow $ 2,999 billion in the form of market debt for private investors, based on the fact that the cash balance at the end of June will be $ 800 billion,” the statement said. It explains that the increase in the loan was affected by the consequences of the pandemic, “including expenses under the new law on assistance to private individuals and businesses, changes in tax revenues, in particular deferrals for private individuals and businesses from April to June.”
In the period from July to September, it is planned to place such securities for another $ 677 billion with an estimated balance at the end of September at $ 800 billion. For comparison, in 2019, for 12 months, the Ministry of Finance loans amounted to $ 1.28 trillion.
US President Donald Trump signed on April 24 a bill on the next package of nearly $ 500 billion measures aimed at overcoming the consequences of the new coronavirus pandemic. Earlier, Congress approved the allocation of $ 350 billion for these purposes, but by mid-April the funds had been exhausted. The previous package of stimulus measures of more than $ 2 trillion was adopted at the end of March. Prior to this, lawmakers allocated $ 8.3 billion to the US administration to contain the pandemic.
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