Indonesia's financial regulator is allowing pension funds and insurance firms to buy corporate bonds with ratings below 'AA' to boost the local market, an official said on Friday.
The rule easing has already been applied to pension funds, Firdaus Djaelani, non-bank financial institutions supervisor at the Indonesian Financial Services Authority, told reporters. It will apply to insurers later this year, he said.
The authority on Friday issued 35 policies aimed at stimulating the economy, such as by developing the repurchase agreements market and encouraging small and mid-sized businesses to pursue initial public offerings.
The regulator was considering easing investment in riskier products as the local market was "not liquid enough", Nurhaida, the capital market supervisor, told Reuters in March. (Reporting by Cindy Silviana; Writing by Eveline Danubrata; Editing by Christopher Cushing)
No comments:
Post a Comment