Gov’t pushes limits with P2.4bn debt target

The auction of three treasury bills and two bonds by the Bank of Botswana (BoB) falls under the P30 billion domestic borrowing programme approved by Parliament in September 2020 and designed to plug budget gaps while improving the capital market’s depth.

However, since its approval by Parliament, the domestic borrowing programme has underperformed, with the dealers demanding returns or yields higher than the BoB and government have been willing to accept.