BB likely to buy back govt securities soon
Tuesday, 22 December 2009
FE Report
The central bank is likely to start buying back government securities aiming to manage the government's surplus funds properly, officials said.
The Bangladesh Bank (BB) will take the move against the backdrop of the surplus balance in government account that stands at around Tk 100 billion now.
"We are now working to start the buy-back process of the government-approved securities shortly," a BB senior official told the FE Monday without elaborating.
The BB's latest move will reduce debt service liabilities of the government, said another BB official. The central bank would buy only four government bonds and three treasury bills from the banks and financial institutions under the arrangement, he added.
Currently, four government bonds - 5-year, 10-year, 15-year and 20-year duration - are being traded in the markets.
On the other hand, three treasury bills (T-bills) are being transacted through auctions to adjust the government borrowing from the banking system.
The T-bills have the maturity periods of 91 days, 182 days and 364 days.
The central bank is likely to start buying back government securities aiming to manage the government's surplus funds properly, officials said.
The Bangladesh Bank (BB) will take the move against the backdrop of the surplus balance in government account that stands at around Tk 100 billion now.
"We are now working to start the buy-back process of the government-approved securities shortly," a BB senior official told the FE Monday without elaborating.
The BB's latest move will reduce debt service liabilities of the government, said another BB official. The central bank would buy only four government bonds and three treasury bills from the banks and financial institutions under the arrangement, he added.
Currently, four government bonds - 5-year, 10-year, 15-year and 20-year duration - are being traded in the markets.
On the other hand, three treasury bills (T-bills) are being transacted through auctions to adjust the government borrowing from the banking system.
The T-bills have the maturity periods of 91 days, 182 days and 364 days.