Bangladesh Bank: Government Borrowing from Domestic Sources - July - December 2018

Transcription

1. Monthly Report On Government Borrowing from Domestic Sources1 July-December , FY18 Research Department Bangladesh Bank 1 The report has been prepared by Money and Banking Division, Research Department, Bangladesh Bank (the Central Bank of Bangladesh). Comments are welcome to E-mail: mohammad.abdul@bb.org.bd, arjina.efa@bb.org.bd & sm.sumon@bb.org.bd. 1
2. Government Borrowing from Domestic Sources in July-December , FY18 The government borrows from two domestic sources: banking system through Treasury Bills (T-Bills) & Bonds and the non-banking system mainly through National Savings Directorate (NSD). Instrument-wise govt. domestic borrowing (net) during JulyDecember, FY18 is depicted in Figure-1. Figure-1: Instrument-wise Govt. Domestic Borrowing (Net) during July-December, FY18 -3015.6 0.0 0.0 0.0 -4748.4 3050.0 -1067.5 -72.9 23823.5 344.1 388.2 28,000 24,000 20,000 16,000 12,000 8,000 4,000 0 -4,000 -1373.9 -2570.3 -6.4 -8,000 Ways and Means Adv. Overdraft Overdraft Block Govt. Currency Liabilities Treasury Bills Treasury Bonds Special T. Bonds Balances of GIIB Fund NSD Instruments Adv. to Food Ministry Adv to Other Min,Auto&Semi-Auto Accrued Interest Govt. Deposits (-) Other securities Taka in Crore Source: Debt Management Department, Statistics Department, Bangladesh Bank, National Savings Directorate, December 2017 Govt. domestic borrowing (net) stood at Tk. 14750.8 crore during July-December, FY18 after the adjustments with T-Bills and Bonds, NSD, Ways and Means Advances (WMA), advances to Food Ministry and other Ministries, Overdraft (OD) current and block accounts, accrued interest, and advances and deposits of autonomous and semiautonomous bodies, balances of GIIB (Government Islamic Investment Bond) fund as well as deduction of cash balance in the form of govt. deposits with Bangladesh Bank and scheduled banks (i.e. including banking and nonbanking sources). It may be noted that the amount was Tk. 17463.2 crore and Tk. 8234.6 crore during July-November of FY18 and July-December of FY17 respectively. The govt. domestic borrowing (net) during July-December, FY18 is 79.1 percent higher than that of the same period of the previous year. It may be mentioned that Govt. borrowed Tk. 23823.5 crore through NSD instruments in July-December, FY18. It is observed that govt. deposits increased by Tk. 2570.3 crore (net) with the banking system during this period. Deposits with Bangladesh Bank (BB) increased by Tk. 1255.0 crore and deposits with scheduled banks (SBs) increased by Tk. 1315.3 crore. Govt. repaid (net) Tk. 3794.4 crore through T-Bills and Bonds to the banking system during July-December, FY18. 2
3. Govt . borrowing from the banking system decreased by Tk. 10101.2 crore during JulyDecember, FY18. Figure-2: Movements in Government Domestic Borrowing during July-December, FY18 30,000 25,000 20,000 15,000 10,000 5,000 0 -5,000 -10,000 -15,000 BB SBs Non-Bank Jul-Dec Jul-Nov Jul-Oct Jul-Sept Jul-Aug July Taka in crore From Figure-2, it is observed that the net borrowing from banking system was negative in July, FY18. But, Govt. borrowing from banking system was positive during July-August, FY18. The net borrowing through banking system decreased during JulySeptember, July-October and July-November, FY18. Total Source: Debt Management Department and Statistics Department of Bangladesh Bank, National Savings Directorate, December, 2017. On the other hand, non-bank govt. borrowing (net) stood at Tk. 24852.0 crore during JulyDecember, FY18. As a result, govt. borrowing (net) from the domestic sources during July-December, FY18 stood at Tk. 14750.8 crore. The movement in net govt. borrowing from different domestic sources during July-December, FY18 is demonstrated in Figure-2. Figure-3: Monthly Trends in Government Domestic Borrowing during July-December of FY18 20,000 Figure-3 shows Taka in crore 15,000 10,000 5,000 0 -5,000 -10,000 BB SBs Non-Bank Dec-17 Nov-17 Oct-17 Sep-17 Aug-17 Jul-17 -15,000 Total Source: Debt Management Department and Statistics Department of Bangladesh Bank, National Savings Directorate, December 2017. 3 the monthly movement of government net domestic borrowing during JulyDecember of FY18. During the month of December, 2017, Govt. domestic borrowing decreased by Tk. 2712.4 crore (borrowed Tk. 245.3 crore from BB, 3005.9 crore from non-bank and repaid Tk. 5963.5 crore to SBs) which is Tk. 7179.2 crore lower than that of the month of November, 2017.
4. In the budget of FY18 , Tk. 60352.0 crore has been fixed for borrowing from domestic sources by the government of which Tk. 28203.0 crore and Tk. 32149.0 crore have been targeted to borrow from banking and non-banking sources respectively. During July-December of FY18, the net repayment and holding of cash balances with Bangladesh Bank stood at Tk. 3752.9 crore. In addition, the net repayment and holding of cash balances with scheduled banks stood at Tk. 6348.3 crore during the same period. Figure-4: Budget Target and Net Govt. Domestic Borrowing during July-December of FY18 Bangladesh Bank -3752.9 -6348.3 Scheduled Banks Actual (Banking System) -10101.2 Target (Banking System) 28203.0 Actual (Non-Bank) 24852.0 Target (Non-bank) 32149.0 Actual (Total) 14750.9 60352.0 64,000 56,000 48,000 40,000 32,000 24,000 16,000 8,000 0 -8,000 -16,000 Target (Total)) Taka in Crore Source: Debt Management Department and Statistics Department of Bangladesh Bank, National Savings Directorate, December 2017. A comparative picture of government total budget target and actual domestic borrowing situation during July-December of FY18 is shown in Figure-4. Government total borrowing from other than banks (including NSD, T-Bills and Bonds) stood at Tk. 24852.0 crore of which Tk. 23823.5 crore was borrowed through NSD instruments during July-December, FY18. The total net government domestic borrowings (banking and nonbanking sources) stood at Tk. 14750.8 crore during July-December of FY18 which is 24.4 percent of total budget target. 4
5. Major Findings of the Govt . Borrowings from Domestic Sources:  From banking system, total outstanding of Govt. domestic borrowings decreased by Tk. 101.0 billion in December, FY18 compared to the outstanding of Govt. domestic borrowings of June, FY17.  Govt. borrowed Tk. 248.5 billion (of which Tk. 238.2 billion through NSD instruments) from other than banks in July-December, FY18, which is 77.3 percent of the Non-Bank budget target.  Government borrowings from NSD instrument is increasing significantly due to its relatively higher interest rate than other savings rates. 5
6. Annex-1 Table I : Government Borrowing Position from the Banking System during July-December of FY18 (Provisional) (Taka in crore) Sl. No. Particulars 1 2 Issue and Maturity Objectives date 3 4 Outstanding as on Outstanding as on Outstanding as on 30 June 17 30 November 17 31 December 17 5 6 7 Change (+) / (-) December 17 July-December 17 8=(7-6) 9=(7-5) A. Bangladesh Bank To increase Government cash balance 1. Ways and Means Advances 2. Overdraft 3. Overdraft Block 4. Devolvement a) Treasury Bills b) Treasury Bonds 5. Government Currency Liabilities 6. Advances to Autonomous and Semi-autonomous Bodies 7. Accured Interest 8. Government Deposits@/ (-) 9. BB's Balances of GIIB Fund (-) A. Total : (1 +...+ 9)* 3015.6 734.4 0.0 -734.4 -3015.6 0.0 5685.0 5031.1 811.6 4219.5 2026.3 0.0 108.4 -29.2 -2999.5 12,837.7 0.0 5685.0 4811.7 478.6 4333.1 2026.3 0.0 89.8 -261.0 -4246.6 8,839.6 0.0 5685.0 5377.9 226.0 5152.0 2026.3 0.0 109.2 -1284.2 -2829.4 9,084.8 0.00 0.0 566.3 -252.6 818.9 0.0 0.0 19.4 -1023.2 1417.2 245.3 0.0 0.0 346.8 -585.7 932.5 0.0 0.0 0.8 -1255.0 170.1 -3,752.9 23518.5 21486.7 19330.8 -2155.9 -4187.7 23518.5 21486.7 19330.8 -2155.9 -4187.7 99758.5 7108.8 24503.6 38775.5 16284.7 99160.1 6455.5 23337.3 39256.5 16662.7 100872.5 6882.5 23204.0 39719.6 17130.2 1712.4 427.0 -133.3 463.0 467.5 1114.0 -226.3 -1299.6 944.1 845.5 B. Deposit Money Banks (DMBs) 1. Government Treasury Bills To increase Government cash balance i) Treasury Bills (Less than 1 year) 2. Bangladesh Govt. Treasury Bonds (BGTB) i) 2-years Bangladesh Govt.Treasury Bonds ii) 5-years Bangladesh Govt.Treasury Bonds iii) 10-years Bangladesh Govt.Treasury Bonds iv) 15-years Bangladesh Govt.Treasury Bonds To increase long-term investment of different banks, non-bank financial institutions and employees GF of different companies v) 20-years Bangladesh Govt.Treasury Bonds 3. Others Treasury Bonds a) 5 Years and above (Specialized Bonds) i) Issued 16 Jan-2011 and 7 &10-years (BJMC&BTMC) interest free Treasury maturity date 16 January Bond- 2017 &2020 2018 & 2021 respectively ii) 25-years (Jute)Treasury Bond-2018 bearing 5.0 3/ percent interest iii) 25-years (Jute) Treasury Bond-2019 bearing 5.0 percent interest iv) 25-years (Jute) Treasury Bond-2020 bearing 5.0 percent interest1/ v) 10-years to 15-years (BPC) Treasury Bond bearing 5.0 percent interest2/ vi) 6-years (BPC) Treasury Bond bearing 7.0 percent interest4/ vii) 9-years to 13-years BJMC Treasury Bond bearing 5.0 percent interest viii) 7-years SPTB-2020 bearing 7.0 percent interest ix) 8-years SPTB-2021 bearing 7.0 percent interest x) 10-years SPTB-2023 bearing 7.0 percent interest To repay the loan of BJMC & BTMC To compensate for the liquidation of jute sector credit To compensate for the Issued 30 Jun-1994 and liquidation of jute sector maturity date 30 Jun-2019 credit To reimburse one-third of Issued 1 Jul-1995 and the debt due to jute mills' maturity date 1 Jul-2020 loan write-off by the private banks. Issued 25 Sep-2007 and To repay the loan of Maturity date from 25 Sep- Bangladesh Petroleum Corporation 2015 to 25 Sep-2022 To repay the loan of Issued 26 Dec 2011 and Bangladesh Petroleum Maturity date 26 Dec-2017 Corporation Issued 23 Oct-2011 and To repay the loan of BJMC maturity date 23 October 2020, 22 & 24 respectively Issued 29 June-2013 and maturity date 29 June-2020 To increase Government Issued 29 June-2013 and maturity date 29 June-2021 cash balance Issued 29 June-2013 and maturity date 29 June-2023 Issued 1 Nov-1993 and maturity date 1 Nov-2018 4. Sub-Total : (1+2+3) Prize Bond/Income Tax Bond 5. Government's other Securities 6. Advances to Food Ministry 7. Advances to Other Ministries 8. Advances to Auto./Semi-Autonomous Bodies 9. Accrued Interest 10. Deposits of Ministries and Departments (-) 11. Deposits of Auto./Semi-Autonomous Bodies (-) 12. 13. SBs's Balances of GIIB Fund (i+ii) i) Investment to GIIB Fund ii) Borrowing from GIIB Fund (-) B. Total : (4+…+13) Grand Total : (A+B)* Notes: @/ Including other deposits. 1/ An amount of Tk. 2.7 crore was paid in July 2017 against the outstanding of Tk. 8.9 crore in June 2017 2/ An amount of Tk. 100 crore was paid in September 2017 against the outstanding of Tk. 2922.5 crore in June 2017 3/ An amount of Tk. 14.8 crore was paid in November 2017 against the oustanding of Tk. 29.6 crore in June 2017 4/ An amount of Tk. 950 crore was paid in December 2017 against the outstanding of Tk. 950 crore in June 2017 13085.9 13448.1 13936.3 488.2 850.4 11997.6 11880.1 10930.1 -950.0 -1067.5 11997.6 11880.1 10930.1 -950.0 -1067.5 339.0 339.0 339.0 0.0 0.0 29.6 14.8 14.8 0.0 -14.8 20.5 20.5 20.5 0.0 0.0 8.9 6.2 6.2 0.0 -2.7 2922.5 2822.5 2822.5 0.0 -100.0 950.0 950.0 0.0 -950.0 -950.0 1792.0 1792.0 1792.0 0.0 0.0 2000.0 2000.0 2000.0 0.0 0.0 2000.0 2000.0 2000.0 0.0 0.0 1935.1 1935.1 1935.1 0.0 0.0 135274.6 26.4 3.5 291.1 1657.5 1415.8 3453.0 -26630.1 -38021.2 2816.5 8276.1 -5459.6 80287.1 93,124.8 132527.0 23.2 3.9 274.1 1613.6 1741.8 4830.6 -25378.4 -39739.3 4005.9 8715.5 -4709.6 79902.4 88,741.9 131133.4 19.6 3.9 635.2 1452.0 2009.5 2078.3 -26355.6 -39611.0 2573.5 9243.1 -6669.6 73938.8 83,023.6 -1393.5 -3.6 0.0 361.1 -161.6 267.7 -2752.3 -977.2 128.3 -1432.4 527.6 -1960.0 -5963.5 -5718.3 -4141.2 -6.8 0.4 344.1 -205.5 593.7 -1374.7 274.5 -1589.8 -243.0 967.0 -1210.0 -6348.3 -10,101.2 *Including GIIB Fund Source: Debt Management Department, Statistics Department, Bangaldesh Bank ( Figures of Treasury Bills and Bonds (Including Special Bonds) are collected from DMD).
7. Annex-2 Table-II : Government Borrowing (Net) from Other than Banks during July-December of FY18 Sl. No. 1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Particulars 2 NSD Instruments Defence Savings Certificate 5-year Bangladesh Savings Certificate 3-year Savings Certificate Bonus Savings Certificate 6-month interest bearing Savings Certificate Family Savings Certificate 3-month interest bearing Savings Certificate Jamanat Savings Certificate Pensioner Savings Certificate Post Office Savings Bank a) General Account b) Fixed Account c) Bonus Account Postal Life Insurance Prize Bond Wage Earners' Development Bond 3-year National Investment Bond US $ Premium Bond US $ Investment Bond Total : (1+...+15) 18. Govt. Treasury Bills/Bonds i) Government Treasury Bills ii) Bangladesh Govt. Treasury Bonds (BGTBs) a) 2-year Bangladesh Government Treasury Bonds b) 5-year Bangladesh Government Treasury Bonds c) 10-year Bangladesh Government Treasury Bonds d) 15-year Bangladesh Government Treasury Bonds e) 20-year Bangladesh Government Treasury Bonds 19. Total Non-bank Government Borrowing (net) : (17+18) Sources : National Savings Directorate, Debt Management Department, BB. Sale 3 July-December 2016 Repayment Principal Interest 4 5 0.0 1.0 3059.1 767.4 0.0 0.0 0.0 0.0 0.0 0.0 12530.5 2913.6 8797.4 2864.6 0.0 0.0 2349.0 694.8 6182.1 2776.3 1119.3 852.8 5062.8 1923.5 0.0 0.0 43.2 43.6 42.3 20.0 564.0 83.5 0.0 0.6 11.3 14.7 164.4 89.8 33743.3 10269.7 Outstandings as on December 2016 24917.4 231.85 24685.5 478.90 6027.12 10254.76 3311.26 4613.50 1.3 240.4 0.0 0.0 0.0 3574.7 1669.3 0.0 483.9 677.8 45.4 632.3 0.0 12.5 7.6 238.8 0.1 12.4 35.5 6954.3 Net Sale 6 = (3-4) -1.0 2291.7 0.0 0.0 0.0 9616.9 5932.9 0.0 1654.1 3405.8 266.5 3139.3 0.0 -0.4 22.4 480.5 -0.6 -3.4 74.6 23473.6 Net Changes July-Dec 2016 823.9 -80.5 904.4 10.2 -62.5 432.5 248.7 275.4 24297.5 Sale 7 (Taka in Crore) July-December 2017 Repayment Net Principal Interest Sale 8 9 10 = (7-8) 0.0 0.8 2940.1 1380.5 0.0 0.0 0.0 0.0 0.0 0.0 12813.6 4100.9 11448.7 5072.2 0.0 0.0 3260.7 1121.0 7490.6 3424.0 1420.0 1112.0 6070.7 2312.0 0.0 0.0 39.3 42.8 35.7 16.6 961.4 77.4 0.0 0.2 14.6 13.3 164.3 95.7 39168.8 15345.2 Outstandings as on December 2017 26393.7 245.59 26148.15 280.46 6135.58 10747.37 3999.19 4985.55 0.3 640.6 0.0 0.0 0.0 4767.9 2758.5 0.0 601.2 715.1 24.3 690.8 0.0 13.3 12.4 310.6 0.0 10.9 42.7 9873.5 -0.8 1559.6 0.0 0.0 0.0 8712.7 6376.6 0.0 2139.7 4066.6 308.0 3758.6 0.0 -3.5 19.1 884.0 -0.2 1.3 68.5 23823.5 Net Changes July-Dec 2017 1028.5 25.0 1003.5 -91.3 357.5 455.9 211.0 70.3 24852.0