Reply To:
Name - Reply Comment
Last Updated : 2024-04-26 10:26:00
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.
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul