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Treasury to block parastatals from security bills bids
Treasury says the directive to bar the parastatals from competitive bidding will mitigate the growing risk of domestic interest payment and reduce the tendency of the government to borrow funds held by public entities.
The Treasury will block parastatals, ministries and State departments from placing competitive bids for government securities in a bid to control the cost of domestic borrowing by the State.
The move means that ministries, State departments and parastatals will settle for the average return offered during the auction of bonds without directly influencing the yields as has been the case previously.
