Dhaka, Bangladesh (BBN)– The government borrowed BDT 5.0 billion through issuing its treasury bonds to finance partly budget deficit in the ongoing fiscal year.
Twenty seven bids amounting total of BDT 12.8815 billion were offered against pre-targeted amount of BDT 5.0 billion for two-year Bangladesh Government Treasury Bonds (BGTBs). Of those, two bids amounting total of BDT 5.0 billion were accepted.
The coupon rate of the accepted bid was 8.4800 percent, according to the auction result.
The government is set to borrow a total of BDT 312.21 billion from the banking system through treasury bills and bonds to finance its budget deficit.
Under the arrangement, the government has decided to borrow BDT 198.24 billion from the banking system by issuing bonds, while BDT 113.97 billion will be borrowed through auctions of short term T-bills.
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.
BBN/SSR/AD-02Dec14-11:55 pm (BST)
