Sales of savings tools soar

Sales of savings instruments more than trebled, year-on-year, to Tk 10,542 crore in July-November this fiscal year, mainly due to a dip in interest rates on bank deposits, according to government data.

In the five-month period, the government's borrowing from savings instruments crossed its target for the entire year -- Tk 9,056 crore.

Bank officials said they had to lower interest rates on deposits because of a poor investment situation in the country. In comparison, interest rates on the government's savings tools are more attractive.

The average interest rate on bank deposits was 7.40 percent in October, down from 8.47 percent in the same month a year ago, according to central bank statistics.

As sales of savings instruments soared, the pattern of the government's domestic borrowing has also changed.

Between July and October, the government's net borrowing from banks was only Tk 107 crore, against a target of Tk 31,221 crore for the entire year.