Outstanding Stock of Treasury Bills and Bonds by Holders

Post Date: 08 July 2019   |   Category: General   |   Hits: 2101

(Proportions of the nominal trends)

The medium term debt strategy for the financial year 2016/17 emphasized on the need to develop the domestic market by increasing the issuance of Treasury bonds over the medium term. The strategy targeted a mix of 60 percent and 40 per cent for external and domestic financing, respectively. Considering the domestic debt market, issuance of medium term papers through benchmark bonds was recommended in order to improve the refinancing risk profile. Short term debt issuances (T-bills) was limited to 20 percent, whereas medium to long term maturities (5 – 30 years T-bonds) was to account for 80 percent of total domestic government borrowing. However, as at end June 2017, the actual proportion for Treasury bills and bonds stood at 35 percent and 65 per cent respectively while the actual financing through concessional, semi concessional and commercial borrowing stood at 18 per cent, 16 per cent and 26 percent against the proposed 23 percent each for concessional and semi concessional loans and 14 percent for commercial loans respectively.

The domestic public debt comprises mainly of Treasury bills and bonds. Short term debt with maturities of 91, 182, and 364 days account for 7.9 percent of GDP (US$ 6.63 billion) while the long term debt mainly medium and longer term Treasury bonds, including infrastructure bonds (IFB) account for 17.0 10 percent of GDP (US$ 14.15 billion). The Pre-1997 government debt accounted for US$ 0.2 billion.