20 Feb 2009

Interest rate rises on Government debt

6:22 am on 20 February 2009

Finance Minister Bill English has signalled the Government will be in for a difficult time raising funds from international investors this year.

The interest rate on the Government's debt rose again on Thursday, putting spending plans under pressure.

Mr English says governments overseas are cramming into international debt markets to fund huge stimulus packages.

Economists say this means the interest rate the Government will have to pay on its rising debt could rise further this year.

Mr English says the Government will continue borrowing to protect New Zealanders from the sharp end of the recession.