Local news

Govt is making payments for treasury notes

Government is making payments for treasury notes that matured on Tuesday, despite earlier statement that no coupons will be paid in 2023.

Investors have been receiving payments on the government instruments with coupon rate of above 18.5% as of 6pm.

However it appears the bonds were honoured because the domestic debt exchange programme is yet to set in after it was postponed twice to 16th January.

Government was compelled to restructure its debt in order to qualify for a a $3 billion loan from the International Monetary Fund.

However the deadline for investors to sign up for the debt exchange was extended on two occasions following labour agitations against the inclusion of pension funds in the programme.

Some analysts who spoke to 3Business expects the government to pay for 3-year bonds that will matured later this month, as the debt exchange may not be completed as scheduled.

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