According to the government borrowing calendar for Apr-Sep 2013, the centre would issue Rs 150 billion worth bonds on an average every week during the six months.
Thus, in the first six months of the next financial year, the government would borrow Rs 3.49 trillion or 60 percent of the full-year gross target. On a net basis, the government will borrow 58 percent of its full-year target in the first half.
As part of its gross borrowing, the government plans to issue Rs 120-200 billion of inflation-indexed bonds in the April-September period.
In 2013-14, the gross market borrowing of the government is pegged at Rs 5.79 trillion, excluding the Rs 500 billion of bonds it will sell to fund a buy back.
New Delhi is likely to buy back bonds from the Reserve Bank of India (RBI), and details of the re-purchase will be decided mid-April, another finance ministry official said.
The government buying back bonds from the RBI will give more space for RBI if it wants to conduct open market operations, said Paresh Nayar, head of trading at First Rand Bank.
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