Gov’t bond issuance ceiling raised to P55bn

Friday, March 22, 2024 | 1400 Views |

New heights: Serame said the proposed new debt ceiling could have been as high as P70bn, but this would have violated the borrowing limits and placed the fiscus in significant jeopardy PIC: MORERI SEJAKGOMO

Legislators on Tuesday evening approved an increase in the limit of the government bond programme from P30 billion to P55 billion, giving the Finance Ministry more room to raise debt locally and plug deficits after the previous limit was reached in February.

Government’s bond programme, also known as the domestic note issuance programme, allows the Bank of Botswana (BoB) to raise debt from the local capital market on behalf of government, through the issuance of treasury bills and bonds. In September 2020, Parliament increased this programme to P30 billion from P15 billion, acknowledging the effects of the COVID-19 pandemic on the budget.

On Tuesday, Finance Minister Peggy Serame said the P30 billion limit had been reached in February, necessitating the increase that would both fund budget deficits and help the development of the capital market.

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Gov’t bond issuance ceiling raised to P55bn

Legislators on Tuesday evening approved an increase in the limit of the government bond programme from P30 billion to P55 billion, giving the Finance Ministry more room to raise debt locally and plug deficits after the previous limit was reached in February.

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