Primary issuance of the government’s short-term and long-term tradable debt securities increased significantly in the first nine months of the current calendar year.
Bangladesh Bank statistics showed that the total issuance of treasury bills and treasury bonds stood at Tk 1457.77 billion in January-September period of the current year. The amount was Tk 662.42 billion in the same period of 2018.
Thus primary issuance of treasury bills and bonds more than doubled during the period under review.
Central bank statistics further showed that issuance of treasury bills, short-term debt securities increased by around 54 per cent in the first nine months of the current year.
At the same time, primary issuance of long-term debt securities or treasury bonds also jumped by around 153 per cent.
To finance the budget deficit government has to borrow from banks. Treasury bills and bonds are used for this borrowing.
There is, however, no updated data on net issuance of treasury bills and bonds. Net issuance of these securities is estimated deducting the repayments from primary issuance at a particular period of time.
Bangladesh Bank statistics showed that value of net issuances of treasury bills and bonds were Tk 904.93 billion and Tk 364.75 billion respectively in FY19.
