Global News: Eby raises concerns over panda bonds issued by BC government

Posted in: , ,

June 30, 2016 | Justin McElroy

Quoted from the article:

“Is there a connection between these bonds and the ability of people to evade the currency controls in China in order to buy Vancouver real estate?” asked Vancouver-Point Grey MLA David Eby, who wonders why such an arrangement was needed.

“There are lots of reasons why people would want to buy bonds with British Columbia, including the purchase is incredibly secure.”

De Jong was unavailable to comment today, but a spokesman from the Ministry of Finance told Global News they believe the interest they’re paying on those bonds is fair, and that there is no way these bonds can be used as leverage to buy real estate here. They believe that the panda bonds are less about making money, and more about building relationships in China.

However, the Ministry of Finance wouldn’t disclose what interest rate the province of B.C. is getting from its deposit in Singapore.

“It’s the public’s money. And that includes issuing a paper explaining why it’s a good investment…including what is the interest rate we’re receiving from this bank in Singapore. It seems like an unusual arrangement,” said Eby.

“This is an innovative, groundbreaking thing, we’re told. It’s new, it’s different. In that case, it calls for more transparency.”

Read the full article here: http://globalnews.ca/news/2798386/concerns-raised-over-panada-bonds-issued-by-b-c-government/