Abdur Rahim Harmachi, Chief Economics Correspondent bdnews24.com
Published: 2017-07-05 02:46:04 BdST
The government had originally planned to borrow Tk 150 billion from the savings certificates, but the growing number of certificate sales prompted it to borrow more.
In the new fiscal, it has set a target of borrowing Tk 280 billion from the savings certificates as the sector has witnessed a higher deposit than in previous times.
Bonds and saving certificates are forms of debt and the government will have to repay a certain amount of interest with the principal amount.
The deposit interests in banks now vary between four percent to six percent while the certificate interest rates are in double digits – 11 percent to 12 percent.
An announcement ahead of the budget by the finance minister that the certificate interest rate will be slashed in the new budget had shot up the sales even more.
Director General of National Savings Directorate Bablu Kumar Saha told bdnews24.com that in 11 months to May 2017, the savings certificate sales hit Tk 467.9 billion.
“The sales went up because of the news that interest might be slashed in the budget,” he admitted.
Finance Minister AMA Muhith earlier at a meeting with the business leaders said the difference between rates on bank deposits and saving certificates should not vary more than one to two percent. The difference is now four percent.