Dear readers, today we are going to talk about a current topic which concerns the issuance of indexed Treasury Bonds in the Democratic Republic of Congo (DRC). During a recent auction session which took place on October 10, 2023, the Congolese government managed to borrow the sum of 72.60 billion Congolese Francs (CDF), or more than 29 million dollars, from the local financial market.
This financial operation, which has a maturity of six months, had a coverage rate of 121% of the amount put up for tender, with the participation of four bidders. This demonstrates the interest that indexed Treasury Bonds arouse among investors.
It is important to emphasize that the Congolese government chose to set the interest rate at 27%, a decision which differs from the rates usually practiced on the financial market. This initiative aims to promote better mobilization of public revenue and compensate for budget deficits.
Despite the efforts of financial authorities in collecting public revenue, the Congolese government continues to issue indexed Treasury Bills and indexed Treasury Bonds in order to finance its policy and fill any potential liquidity shortages.
It is also relevant to note that this issue of indexed Treasury Bonds takes place in a context where the prices of mining products have experienced a significant increase, which has made it possible to improve public revenues in the country.
In conclusion, the issuance of indexed Treasury Bonds in the DRC continues to be an effective means for the government to mobilize funds and support its economic policy. By choosing an interest rate of 27%, the government seeks to attract investors and ensure better management of the country’s financial resources.
Article link: [https://fatshimetrie.org/blog/2023/10/18/ladjudication-des-bons-du-tresor-en-dollars-une-nouvelle-etape-pour-renforcer-leconomie-de-la- rdc/]
Sources:
– Ministry of Finance of the DRC
– fatshimetrie.org