mmegi

Gov’t mulls inflation-linked bonds

Partners: Serame and Pelaelo at the launch of the government auction calendar and borrowing programme this week PIC: PHATSIMO KAPENG
Partners: Serame and Pelaelo at the launch of the government auction calendar and borrowing programme this week PIC: PHATSIMO KAPENG

Government and the Bank of Botswana are looking at the possibility of introducing inflation-linked bonds, which would represent a more attractive fundraising instrument for a local capital market that has largely snubbed the state’s P30 billion debt programme.

The central bank’s monthly auctions of treasury bills and bonds have nearly all missed their debt targets since Parliament doubled government’s note issuance programme to P30 billion in September 2020.

With its own savings only just recovering from the pandemic’s impact, government has largely looked to the domestic capital market to fund budget deficits widened by COVID-19 spending.


Editor's Comment
A collective responsibility to end FMD spread

As cases continue to threaten herds and rural livelihoods, one simple but critical action can make a powerful difference: strictly adhering to FMD regulations, including refraining from slaughtering cloven-hoofed animals.Cloven-hoofed animals, such as cattle, sheep, goats, and pigs, are highly susceptible to FMD. Slaughter, especially during outbreaks or restricted periods, significantly increases the risk of spreading the virus through...

Have a Story? Send Us a tip
arrow up