Government will issue a 12 billion rupee internal debt

KATHMANDU, MAY 8: The government plans to raise 12 billion rupees in internal debt. Treasury bills (T-bills) with a range of maturities will be used to refinance approximately 12 billion rupees of domestic debt.

On Monday, the Monetary Management Department of Nepal Rastra Bank will auction T-bills totaling Rs. 30.18 billion. A total of Rs 18.18 billion in T-bills will be renewed through auction, and Rs 12 billion in new T-bills will be put up for bid to raise fresh domestic borrowing.

According to the central bank, T-bills worth 3 billion rupees for 28 days, 7 point 10 billion rupees for 91 days, 6 billion rupees for 182 days, and 2 point 8 billion rupees for 364 days will all be renewed through negotiations.

In a similar vein, 12 billion rupees worth of internal debt will be mobilized through the new 91-day T-bill, three- and four-year T-bills, and five billion rupees through the new 91-day T-bill.

Short-term government bonds with a maturity of one year or less are known as Treasury bills. T-bills are divided into four categories based on their lengths: 28, 91, 182, and 364 days.