Negative growth continues in net sales of state-run national instruments

SAJIBUR RAHMAN
The negative growth in net sales of state-run national instruments, known as NSAs, continued to expand in the month of September this year.
Several factors contributed to this decline, including mounting inflationary pressures, financial crises, reduced profitability in banks, and challenging investment conditions.
The net sale of savings certificates is calculated by deducting the amount repaid for previously sold certificates from the total sales.
In September of this year, savings certificates amounting to over Tk 67.457 billion were sold, according to data provided by the Department of National Savings (DNS).
A significant portion of this, Tk 68.93 billion, comprises both the principal amount and profit repaid.
Consequently, after settling these obligations, the government's net debt in this instrument reached over Tk 1.478 billion in September, highlighting the negative growth in the net sales of state-run national instruments.
In the first three months (July-September) of the current (2023-24) fiscal year, gross sale of savings instrument stood at over Tk 216.56 billion, according to the DNS latest statistics.
Out of this, a total of over Tk 229.21 billion comprising both the principal amount and profit, have been diligently repaid. Consequently, following these payments, the government's net debt now stands at over Tk 12.649 billion.
This means, the rate of encashment is higher than the volume of sale during the period.
During this period, the government did not receive any loans from the saving instrument. Instead, it had to repay a substantial amount of more than Tk 12.649 billion.
In the July to September FY 2022-23, the amount of net sale of savings tools stood over Tk 3.30 billion after encashment indicating a positive growth. In the previous financial year, the net sales amount was Tk 85.58 billion.
Currently, there are 11 government-owned saving tools in the market, with four being savings certificates.
These include the 5-year Bangladesh Sanchayapatra (with an 11.28 per cent yield), 3-monthly Profit Bearing Sanchayapatra (11.04 per cent), Family Savings Certificate (11.52 per cent) and Pensioner Sanchayapatra (11.76 per cent yield). These are the maximum yield rates after the certificates mature.
The government has set the net borrowing target from savings schemes for the current financial year at Tk 180 billion.
The government launched an online database named the 'National Saving Certificates Online Management System' and also made eTINs and national identity cards mandatory for savers in 2019.
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