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Indonesia banks warn of liquidity squeeze from govt bond issuance


JAKARTA: Two of Indonesia’s biggest banks have warned that a government strategy of frontloading bond issuance and selling more debt to retail investors is draining cash in Southeast Asia’s largest economy and risks undermining efforts to boost bank lending.

The government has sold more bonds than it targeted at every auction it has conducted so far this year and retail bond sales have been double the initial target.

Corporate News , Banking , Economy

   

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