Bangladesh on Thursday conducted its first-ever auction to buy back government securities before their maturity, marking a new step in the country’s public debt management.
The Bangladesh Bank conducted the buyback operation on behalf of the Finance Division as part of the government’s efforts to make debt management more active, modern and market-oriented, according to a press release issued by the Finance Minister’s Office.
Under the buyback mechanism, the government can repurchase existing government securities from the market before their maturity. The method is internationally recognised as an important tool of Liability Management Operations (LMO).
The Finance Division said the…