Centre postpones Rs 5,000 crore borrowing plan

The Reserve Bank of India (RBI) on Friday said the government has postponed its borrowing programme auctions scheduled between February two-nine to February 23-27 to between February 23-27. The amount was to be raised by issuing dated-stock of tenure 20 years and above. The central bank said that the calendar for issuance of securities is subject to variations depending on market conditions. Bond market sources said government’s financial conditions is healthy and maintaining surplus with the central bank.

Meanwhile, RBI said 18 states would raise around Rs 4,300 crore in the third week as part of borrowing programme and for prepayment of high cost debt to the centre under the debt swap programme. The exact dates for auction and tap sales would benotified later, it added. The Centre has raised Rs 1,18,000 crore through market borrowings and private placements with the central bank so far in 2003-04). This is 71.13 per cent of its budgeted gross market borrowing. For the year, the gross market borrowing programme is Rs 1,65,888 crore and net market borrowing Rs 1,07,194 crore.