The government has taken loans from different sources for meeting the needs of the budget deficit.
Among them, Treasury Bills and Bond Issues are one of the most. But the savings rate is high because the savings certificate is being sold at a higher rate. As a result, the government has been forced to suspend all types of treasury bonds and bill sales activities. In this, the development of secondary market and bond market of Treasury securities has been severely damaged.As well as in the primary dealer banks (the banks which lend money to the government) complexity is being created in liquidity management. The main principles of debt management are being hampered due to the high interest cost of savings certificate. Due to this, the financial crisis in the country is facing a major crisis, as the Ministry of Finance and economists say, due to high interest rates, the depositors have been taking money from the bank and investing in the savings bank. This has reduced the rate of growth of deposits in the banking sector a bit. Banks will not be able to lend the entrepreneurs for investment if the deposit falls. This will further reduce the investment. There will be no new employment. As well as the progress of poverty alleviation, it will be interrupted. So they suggested to sort out the savings policies and they have to give it a solution.
