Title: Issuance of Treasury Bonds and Treasury Bills to offset budget deficits in the DRC
Introduction :
The Congolese government faces budget deficits caused by insufficient mobilization of public revenues. To deal with this situation, it plans to raise a total amount of 470 billion Congolese Francs (CDF), or 232.5 million dollars, on the local financial market of indexed Treasury bonds and Treasury bills. In this article, we will take a closer look at these financial operations and their impact on the Congolese economy.
The indicative issuance schedule:
According to the Central Bank of Congo, the Congolese government plans to raise this global amount on the internal market between the months of August and September 2023. In doing so, it will compensate for budget deficits and will be able to finance public expenditure.
The reasons for the emissions:
In July 2023, the government did not issue indexed Treasury Bills or indexed Treasury Bonds due to the tax deadline relating to the payment of the second installment of income and profit tax. These subsequent issues will therefore make up for the shortfall in revenue.
The impact on domestic public debt:
During the month of July 2023, the government has already repaid an amount of 173.2 billion Congolese Francs in respect of domestic public debt. New issues of Treasury Bonds and Treasury Bills will therefore contribute to covering these financial obligations.
Treasury Bonds and Treasury Bills:
Treasury Bonds and Treasury Bills are debt securities issued by the Treasury of a State. They are repayable in the medium or long term and can be acquired through syndication or auction. These operations allow the government to raise funds on the financial market by issuing public debt.
Conclusion :
The issuance of Treasury Bonds and Treasury Bills by the Congolese government is a measure aimed at offsetting budget deficits and financing public expenditure. They also help to cover domestic public debt obligations. These financial operations are essential to stabilize the Congolese economy and ensure its development