NCPA - National Center for Policy Analysis

Federal Agencies Increase Debt Issues

December 28, 1998

While the U.S. Treasury is borrowing less, a number of governmental entities are borrowing more, according to the Bond Market Association.

Debt issuance by agencies totaled $4.7 trillion in the first nine months of this year -- up 11.2 percent from a year earlier. By contrast, Treasury borrowing fell 12.1 percent to $1.4 trillion -- from $1.6 trillion in the year-earlier nine months.

The agencies borrow funds which they loan out for home mortgages and to assist farmers.

  • The Federal Home Loan Bank System -- the biggest debt issuer in the nine months -- borrowed 15.7 percent more during that period this year, or $1.8 trillion.
  • Freddie Mac increased its debt issuance 34 percent -- to $1.7 trillion.
  • Fannie Mae issued $644.5 billion, up marginally from a year earlier.
  • Farm Credit Systems' debt issuance increased 19.8 percent to $222.7 billion.

Source: Dow Jones Newswires, "Borrowing By U.S. Entities Increases 11.2 Percent," Wall Street Journal, December 28, 1998.


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