The government failed to raise liquidity through market treasury bills as banks invested just Rs38 billion against a target of Rs200bn yesterday.
The banks invested Rs38.5bn for three-month t-bills, Rs12 million for 6-month and Rs90m for 12-month papers, indicating that at the end of the financial year ‘banks preferred to remain liquid’.
The first financial year of the present government was unique in the sense that the government relied heavily on long-term costly borrowing compared to short term cheaper money.
The latest monetary indicators issued by the State Bank on Wednesday showed the government borrowed just Rs315bn for budgetary support till mid of this month.
