In May of FY23, savings certificates sales in Bangladesh reached Tk551 crore, marking the second time the Tk500-crore milestone was surpassed. In the preceding month of April, savings certificates worth Tk581 crore were sold, indicating consecutive months of increased purchases compared to redemptions. However, the net sales of saving certificates for the first 11 months of FY23 remained negative at Tk3,029 crore, as the government borrowed Tk74,700 crore against the repayment of Tk77,700 crore during that period.
The popularity of savings certificates was partly fueled by negative reports on the banking sector, leading to increased interest from investors. Additionally, the higher interest rates offered by savings certificates compared to bank deposits contributed to the surge in sales. The government aims to reduce borrowing from the banking sector, following the advice of the International Monetary Fund, to decrease interest costs. As a result, the borrowing target from savings tools has been reduced to Tk18,000 crore for FY24.
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