BSS, Dhaka :
Record sale of saving certificates helped government borrow less from the banking sector, official data showed.
According to Bangladesh Bank (BB), the government’s borrowing from the banking sector declined in the past eight months of the current 2014-15 financial year (FY15), thanks to the buying spree of saving certificates by a large number of people.
The government during July-February period paid back Taka 6 thousand 50 crore against its borrowing, which was Taka 1 lakh 14 thousand 244 crore at the end of June last year. As a result, the total borrowing in February this year fell to Taka 1 lakh 8 thousand 193 crore.
The significant fall in state borrowing was driven by the sale of saving certificates, which hit the record high of Taka 15 thousand 739 crore during July-January, almost three times higher than the last year’s sale proceeds for the same period, according to Directorate of National Savings.
“The high rate of interest allured many to investment in saving tools”, said economist Dr. Ahsan H. Mansur.
The executive director of the Policy Research Institution (PRI) also believed that people found saving certificates as a safe and secure avenue for investment while other options became unpredictable against the backdrop of political instability.
He said the record sale of saving certificates would also help government finance the deficit budget from out of banking sources.
Record sale of saving certificates helped government borrow less from the banking sector, official data showed.
According to Bangladesh Bank (BB), the government’s borrowing from the banking sector declined in the past eight months of the current 2014-15 financial year (FY15), thanks to the buying spree of saving certificates by a large number of people.
The government during July-February period paid back Taka 6 thousand 50 crore against its borrowing, which was Taka 1 lakh 14 thousand 244 crore at the end of June last year. As a result, the total borrowing in February this year fell to Taka 1 lakh 8 thousand 193 crore.
The significant fall in state borrowing was driven by the sale of saving certificates, which hit the record high of Taka 15 thousand 739 crore during July-January, almost three times higher than the last year’s sale proceeds for the same period, according to Directorate of National Savings.
“The high rate of interest allured many to investment in saving tools”, said economist Dr. Ahsan H. Mansur.
The executive director of the Policy Research Institution (PRI) also believed that people found saving certificates as a safe and secure avenue for investment while other options became unpredictable against the backdrop of political instability.
He said the record sale of saving certificates would also help government finance the deficit budget from out of banking sources.
