The finance ministry said Friday that it plans to spread out the sale of Treasurys needed to cover a large portion of this year's proposed extra budget to prevent instability in the local bond market.

The government drew up an 11.8 trillion-won ($10.5 billion) supplementary budget plan to contain the fallout from the Middle East Respiratory Syndrome  outbreak and thus help Asia's fourth-largest economy keep its growth momentum, some 9.6 trillion won of which will be financed with the debt sales.

According to the ministry, a monthly issuance of Treasurys will be increased by between 1 trillion won and 1.5 trillion won from August through December. It said some 700 billion won worth of state bonds will be sold additionally this month.

"Initially, the government planned to issue 102.7 trillion won worth of Treasurys this year, but with the extra budget plan, the amount will be marked up to 112.3 trillion won," said Vice Finance Minister Bang Moon-kyu.

He predicted the 10 percent increase would not cause any serious problems for the bond market, saying that the allocation of state debt sales over the cited period will help prevent a sudden increase in bond yields.

The Treasurys to be floated will mature in three or five years, the ministry said.

As a result of the government issuing more debts this year, the government will work to speed up repayments of state debts due in the next two or three years.

South Korea is obliged to pay back 57.4 trillion won worth of debts next year, with the number rising to 60.8 trillion won in 2017 and 71.8 trillion won the following year. (Yonhap)