Central Bank subscribes to Rs.90bn Treasury bills to assist govt financing

Jan 16, 2019 (LBO) – Central Bank says it subscribed to Treasury bills amounting to 90 billion rupees during this month at the request of the Treasury to assist financing needs of the government.

The bank said there is a delay in receiving expected foreign currency financing arrangements as envisaged in the Treasury’s cash flow for the month of January 2019.

“The Monetary Board has acceded to the Treasury’s request in the national interest and under exceptional circumstances,” the Central Bank said.

“Having reviewed the macroeconomic consequences of subscribing to T-bills, the Govt has agreed to reverse part of the transaction in February and the balance during the first quarter of 2019 once the Government’s borrowing programme is brought back on track with realisation of expected financial arrangements.”