Govt to borrow Tk 72.53b thru' T-bills auction today
Sunday, 1 July 2007
FE Report
The auction of treasury bills (T-bills) will be held today (Sunday) in the Bangladesh Bank (BB) to borrow net Tk 72.53 billion from banking system by the government during fiscal 2007-08.
The central bank has already issued the new calendar for auctions of T-bills and bonds along with the amount of borrowing of the government on a weekly basis, official sources said.
Under the new calendar, Tk 5.00 billion for 28-day, Tk 2.00 billion for 91-day, Tk 1.00 million for 182-day and Tk 1.00 million for 364-day T-bills will be issued respectively from July 1 to December 31 for auctions.
On the other hand, Tk 5.00 billion for 28-day, Tk 2.50 billion for 91-day, Tk 1.50 billion for 182-day and Tk 1.50 billion for 364-day T-bills will be issued respectively from January 1 to June 30 next year.
Besides, the auction of 10-year tenure Bangladesh Government Treasury Bond (BGTB) will be held on the first Tuesday of each month with issuance worth Tk 4.00 billion while 5-year tenure BGTB will be held on the third Tuesday of each month with issuance worth Tk 4.00 billion.
On the other hand, the auction of newly introduced 15-year tenure BGTB will be held on the second Tuesday of each month with issuance worth Tk 1.00 billion while 20-year tenure BGTB will be held on the fourth Tuesday of each month with issuance worth Tk 500 million.
The government issued two new treasury bonds of 15-year and 20-year terms last week to activate the country's secondary bond market by creating new market players.
The central bank has already issued a circular in this connection and asked all commercial banks and non-banking financial institutions (NBFIs) to follow the new calendar for T-bills and bonds auctions for fiscal 2007-08 properly.
"We have issued the new auction calendar and accordingly informed the commercial banks and NBFIs mentioning indicative figures of the government borrowing on yearly basis," a BB senior official told the FE.
A seven-member high-powered committee, headed by the most senior deputy governor of the central bank, will oversee the overall auction system that will be run on the basis of market behaviour and government's credit requirement.
The government has already set a target to borrow net Tk 72.53 billion from the country's banking system to fund the budget deficit financing during the fiscal 2007-08. The figure was Tk 65.31 billion in the revised budget for the just concluded fiscal 2006-07.
The auction of treasury bills (T-bills) will be held today (Sunday) in the Bangladesh Bank (BB) to borrow net Tk 72.53 billion from banking system by the government during fiscal 2007-08.
The central bank has already issued the new calendar for auctions of T-bills and bonds along with the amount of borrowing of the government on a weekly basis, official sources said.
Under the new calendar, Tk 5.00 billion for 28-day, Tk 2.00 billion for 91-day, Tk 1.00 million for 182-day and Tk 1.00 million for 364-day T-bills will be issued respectively from July 1 to December 31 for auctions.
On the other hand, Tk 5.00 billion for 28-day, Tk 2.50 billion for 91-day, Tk 1.50 billion for 182-day and Tk 1.50 billion for 364-day T-bills will be issued respectively from January 1 to June 30 next year.
Besides, the auction of 10-year tenure Bangladesh Government Treasury Bond (BGTB) will be held on the first Tuesday of each month with issuance worth Tk 4.00 billion while 5-year tenure BGTB will be held on the third Tuesday of each month with issuance worth Tk 4.00 billion.
On the other hand, the auction of newly introduced 15-year tenure BGTB will be held on the second Tuesday of each month with issuance worth Tk 1.00 billion while 20-year tenure BGTB will be held on the fourth Tuesday of each month with issuance worth Tk 500 million.
The government issued two new treasury bonds of 15-year and 20-year terms last week to activate the country's secondary bond market by creating new market players.
The central bank has already issued a circular in this connection and asked all commercial banks and non-banking financial institutions (NBFIs) to follow the new calendar for T-bills and bonds auctions for fiscal 2007-08 properly.
"We have issued the new auction calendar and accordingly informed the commercial banks and NBFIs mentioning indicative figures of the government borrowing on yearly basis," a BB senior official told the FE.
A seven-member high-powered committee, headed by the most senior deputy governor of the central bank, will oversee the overall auction system that will be run on the basis of market behaviour and government's credit requirement.
The government has already set a target to borrow net Tk 72.53 billion from the country's banking system to fund the budget deficit financing during the fiscal 2007-08. The figure was Tk 65.31 billion in the revised budget for the just concluded fiscal 2006-07.