Bank of Zambia fails to sell govt bonds for 3rd time

Bank of Zambia fails to sell govt bonds for 3rd time

 

On 4 July 2019, the Bank of Zambia advertised the sale of government treasury bills to the general public and international investors.

According to the advert, BOZ offered K475 million for Treasury Bills. Meaning government wanted to raise K475 Million.

But due to lack of confidence in the PF regime, BoZ only received an offer of about K104 Million (approximately 22%).

In fact this was the third flop in 60 days. BoZ conducted two auctions in June, aimed at raising K950m, and they only raised a total of K247 million.

‘The treasury bills were under subscribed. This means that there is less appetite for investors for government financial instruments,’ BoZ insiders told the Watchdog.

In other countries, such offers are oversubscribed as investors know that government will always pay back as promised. But in the current Zambian government, no one is sure.

A government bond is a debt instrument issued by the Zambia, in this case through Bank of Zambia. By issuing this instrument, the Government is borrowing money from the purchasers of this instrument, generally with a promise to pay periodic interest payments and to repay a face value on maturity date.

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    Muntu Bulyo 1 week ago

    PF. They are not only Paya Farmer. They have also killed the economy. Why do Zambian allow themselves to be represented by PF. No wonder someone used to call them stupid idiots.

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