THE city government of Cagayan de Oro will be investing in Treasury bills.
During its weekly session last Monday, the City Council approved an ordinance authorizing Mayor Oscar Moreno to invest in Treasury bills in the amount of P20 million.
According to Councilor Edna Dahino who authored the ordinance, the investment will come from unused funds deposited to the city government at Philippine Veterans Bank and Amanah Bank.
Dahino explained that Treasury bills are sound investments because they gain higher interest than bank deposits.
The councilor also cited Department of Finance Order No. 071-2018 authorizing local government units to invest their unused funds in government securities.
Treasury bills are short-term fixed income securities issued by the Bureau of Treasury. Investing in Treasury bills is practically risk-free since there is a low probability that the Philippine government will default on its own local currency debt.
Dahino's ordinance is backed by Councilors George Goking and Ian Mark Nacaya.