The net sales of national savings certificates plummeted to a negative Tk3,858 crore in the July-November period of 2023, down from the negative Tk1,610 crore recorded in the same period of the previous year.
October alone witnessed a negative net sales figure of Tk1,553 crore compared with that of Tk978 crore negative in the same month the previous year.
A negative value occurs when the repayment of the principal amount exceeds the sales.
In FY23, the government borrowed Tk80,858 crore against the repayment of Tk84,154 crore in the period.
The Bangladesh Bank has made it mandatory to submit the proof of the previous year’s income tax returns for investments in savings certificates worth more than Tk5 lakh.
The increased government bank borrowing of Tk124,122 crore in FY23, with Tk98,826 crore from the central bank, intensified liquidity stress and inflationary pressures in the financial sector.
Banks in recent months have been struggling with a liquidity crisis and the increased government bank borrowing exacerbated liquidity stress in the financial sector, bankers said.
The central bank data showed that the amount of excess liquidity in the country’s banking sector decreased to Tk141,000 crore at the end of November 2023 from Tk175,000 crore in August 2023.
The net NSC sales were Tk3,295 crore negative in FY23 compared with that of Tk19,915.75 crore positive in the previous FY22.
For the current FY24, the government has planned to take a loan of Tk18,000 crore by selling savings certificates.
