Central Bank mulls guidelines for primary dealers on how they should present their financial statements

The Central Bank’s Public Debt Dept., is contemplating issuing guidelines to primary dealers on how they should present their financial statements. The Central Bank’s Public Debt Dept., is contemplating issuing guidelines to primary dealers on how they should present their financial statements. Primary dealers’ who are the market makers for government debt, currently have to publish and submit their financials to the Central Bank.

But there is no formal reporting structure, and the bank had told dealers last week that they were keen to streamline it, to ensure information is fair and accurate.

The Central Bank had also told dealers last week that they plan to issue long-term issues of four and five years from next month.

The bank stopped issuing bonds with maturities above two-years, after rising rates made them too expensive for the government. The spike in rates also dried up trading in long bonds in the secondary market.

Attempts to issue longer maturity bonds come on the back of a dip in interest rates in the primary auctions with low bidding from state institutions and government controlled pension funds.

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