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Govt. borrowings from banking system record drastic decline in October

6 January 2021 09:34 am - 0     - {{hitsCtrl.values.hits}}

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  • Net borrowing falls to Rs.99bn from Rs.281bn in Oct.
  • Cumulative borrowings at Rs.1, 658.3bn for Jan-Nov. period

State borrowings from the banking system fell substantially in November from October highs while the net credit to public sector enterprises also recorded a decline. 


According to the latest data released, net borrowings by the State from the banking sector, including the Central Bank, fell to Rs.99 billion in November from Rs.281 billion in October.The spike in the credit to the government in October was caused by the new moneys printed to repay a sovereign bond fell due in early October. 


The Central Bank printed new money worth of about Rs.123.1 billion between September 30 and October 2 to partly finance the billion dollar sovereign
bond settlement.

Between October beginning and November end the Treasury bill stock held by the Central Bank rose by Rs.246.06 billion. In November alone this stock or the printed money rose by Rs.64.3 billion. With November borrowings, the government had borrowed a cumulative Rs.1, 658.3 billion during the eleven months from commercial banks and the Central Bank. 


Meanwhile, the net borrowings by public corporations fell to Rs.7.5 billion in November from Rs.15.3 billion in October. This could be attributed to the gradual improvement in financial situation of many of the State owned Business Enterprises. 


During the first eleven months, total outstanding credit of public corporations increased by Rs.207.7 billion to Rs.1, 010.5 billion. 


Meanwhile, the money supply in the economy in November as measured by the Broad Money supply or M2b further accelerated to 22.3 percent from 20.9 percent in October, indicating increased money stock with the commercial banks in both domestic and offshore banking units. 


The Broad Money supply in November 2019 was just 6.1 percent.  The private sector credit also rose by Rs.41.4 billion in November.

 

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See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


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See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 


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