Dhaka, Bangladesh (BBN)-The Bangladesh government is set to borrow BDT 385.23 billion from the banking system to finance the budget deficit partly for the next fiscal year (FY) 2015-16.
Under the proposed budget, BDT 241.82 billion will be borrowed issuing long-term Bangladesh Government Treasury Bonds (BGTB) while the remaining BDT 143.41 billion through treasury bills (T-bills).
The government earlier targeted borrowing a total of BDT 312.21 billion from the banking system through T-bills and BGTBs for the part-financing of budget deficit for the FY 15.
Currently, three T-bills are being transacted through auctions to adjust the government’s borrowing from the banking system.
The T-bills have 91-day, 182-day and 364-day maturity periods.
Furthermore, five government bonds with duration of two, five, 10, 15 and 20 years respectively – are being traded in the market.