Category: Economy and Markets
System Check
Change is in the offing to revamp a highly criticised public sector with a top-level Administrative Committee appointed by the Premier, pushing for a series of reforms.rn rnAmong the key changes being suggested is a re-look at salary structures for government workers endash the removal of upper salary limits and doing away with a uniform […]
Goodbye
The Board of Investment (BOI) is looking to trim up to 50 percent of its workforce with a voluntary retirement scheme doing its rounds among staff.rn rnFollowing the BOI Act that was passed in Parliament in December last year, the country quote s main investing arm is being restructured – split up into five Regional […]
Small Hands
A white paper on wide ranging reforms to support and strengthen the small and medium sector has moved from the drawing board to the government for approval. rnBacked by the Asian Development Bank, the reforms form the basis of a proposed national policy on SME quote s, with a draft action plan spread out over […]
Evaluating Reforms
Government projects are not always evaluated, and when they are the evaluations are not taken seriously.As a result failures are unaccounted for and future approaches unaltered. A national policy for evaluation of programs and organizations is expected to help. rn rnldblquote First of all a national Policy on Evaluation has to be done. A clear […]
Oversubscribed
The governments inaugural 10-year bond issue to one billion rupees was oversubscribed by nearly eight times on Friday.The bonds carry an annual coupon of eight and a half percent and a nine percent yield.rn rnHowever, at Fridays close, 5-year bonds were trading at 9.8 percent on the secondary market.rn rnDealers expect yields to slip further […]
Borrowing Cheap
The governments inaugural 10-year bond issue to raise Rs. 1 bn was oversubscribed by nearly eight times on Friday.The issue carries an annual 8.5 percent coupon, as opposed to the quarterly and half-yearly coupons offered on present treasury bonds.rn rnThe Central Bank said it accepted Rs. 1 bn worth of bids at a 9 percent […]
Lending Cheap
The Central Bank on Tuesday cut key short-term rates by 75 basis points in line with its policy of lowering lending rates.The bank lowered the reverse repurchase rate (reverse repo) to 11 percent and the repurchase rate (repo) to 9 percent. These are the lowest rates since May, 2000. rn rnThe Central Bank expects financial […]
Axe On Dollars
The government has drastically cut its planned commercial dollar borrowings in the wake of large aid flows and promised long term structural adjustment loans.The treasury, which was planning to borrow up to US$ 350 million in the international markets, has cut that amount to US$ 100 million, which is expected later this month.rn rnCitibank that […]
Balance Sheet
The proposed Public Finance Act is to be pushed through to Cabinet as an urgent bill, as Parliament resumes work in the New Year. The new Bill raises financial reporting standards for public enterprises and gives legal backing to existing financial regulations.rn rnAs it exists, all financial regulations are compiled into a book of administrative […]
Lending Long-term
The Central Bank plans to issue a 10-year bond issue in January, as part of its efforts to build a long-term yield curve.Officials from the banks Public Debt Dept.said around Rs. 1 bn will be offered at the initial issue.rn rnThe bond is likely to carry a coupon of about 10 percent, though market players […]
Long-Term Borrowings
The government is planning to issue its first long term bonds next month on the back of low risk interest rates.A ten-year government bond will be auctioned early next month in a move that will almost double the length of the government risk free yield curve.rn rnThe public debt department of the Central Bank is […]
New Debt Office
The Central Bank, which has been managing the countrys debt issues for years, will hand over the function to a new agency next year. The new government public debt management office is to combine local and foreign debt raising and government cash flow management.rn rnAt present external debt is raised by a division in the […]