SANTIAGO, June 15 (Reuters) - Chile's central bank said on Monday the government would issue $1.7 billion worth of bonds on the local market and would continue an existing program of dollar sales in July for up to a total of $4 billion.

The central bank said in a statement it would also buy back $1 billion worth of bonds with maturities of 5 years or more, and suspend for the rest of the year issuance of bonds with similar maturities. (Reporting by Rodrigo Martinez)