Investor participation in treasury bills dwindles

BOZ building.

OUTSTANDING arrears and tight liquidity in circulation triggered reduction in investor participation in treasury bills, posting an under-subscription of K3.8 billion in the second quarter.Of the total K6.7 billion offered on the local money market in the quarter under review, only K2.9 billion was taken up by investors, representing 43 percent uptake compared to the K5.6 billion recorded the previous quarter.
Data from Bank of Zambia (BoZ) shows that the subscription rate of treasury bills, which are short-term instruments that Government issues to borrow money from the public through the central bank for a period of one year or less, reduced compared to 98 percent recorded in the first quarter.
BoZ Governor Denny Kalyalya said there was a reduction in the demand for Government securities due to low liquidity levels and adverse sentiments relating to the protracted fiscal challenges.

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