Bangladesh government's borrowings overshoot target by almost 30pc in June-Jan

The government's net borrowing from the state-sponsored savings instruments stood at Tk 257.02 billion in the first seven months of fiscal year (FY) 2020-21, according to official statistics.

The amount is 28.51 per cent or Tk 57.02 billion higher than the total target set for the current FY, the Department of National Savings (DNS) data revealed on Thursday.

The government's net borrowing target from the savings instruments is Tk 200 billion for the FY 21.

Officials said the savers were investing more in these schemes as the yield rates of different savings certificates are attractive.

Many savers have reinvested in the savings tools upon maturity of their existing ones, contributing to increased sales of the instruments, they added.

The gross sales of savings schemes were Tk 656.21 billion in the July-January period of FY 21 and the encashment was Tk 399.18 billion.

The data showed that the payment of yield was Tk 189.08 billion in the first seven months of FY 21.

The statistics also showed that the monthly net borrowing from the savings tools was Tk 52.15 billion in January, Tk 14.42 billion in December, Tk 34.02 billion in November and Tk 40.34 billion in October of the current FY.

The DNS sells four types of savings certificates and their yield rates are up to 11.76 per cent. It also sells different types of bonds to local and expatriate Bangladeshis.

Currently, an estimated 20 million investors are involved in this sector.

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