BoT: G ovt securities record high demand
The Treasury bills market registered a record high demand of 1,228.2bn/- against 360.0bn/- that was offered by the bank of Tanzania in March, this year.
The demand was substantially higher than 728.6bn/- recorded in the preceding month, and four times the amount registered in similar period in previous year.
In the month under review the Bank sold Treasury bills worth 351.4bn/-. Treasury bills also recorded a historical low interest rate of 4.15 per cent in March 2010, far below 13.33 per cent registered in the similar period a year earlier.
According to the bank of Tanzania Monthly Economic Review for April, this development reflects the easy monetary policy stance pursued by the Bank of Tanzania, coupled with a continued cautions approach taken by banks in lending to the private sector, following the global financial crisis on the economy.
In the month under review, Treasury bonds market was supplied with 7-year bond worth 30.0bn/-, same as the amount offered in the preceding month, but higher than 22.5bn/- supplied in the similar period a year earlier.
Demand stood at 149.7bn/-, being lower than 258.3bn/- recorded in the preceding month, but far above the 53.5bn/- recorded in the corresponding period in 2009. The Bank accepted bids worth 30.0bn/-, same as the amount accepted in the preceding month but exceeding 22.1bn/- accepted in the similar period of 2009.
Following the high demand, average 7-year Treasury bond yield to 12.11 per cent from 14.15 per cent recorded in November 2009, when the 7-year bond was last sold. During March 2010, the Bank continued to conduct repurchase agreements with ODCs to suppliment other monetary policy instruments in the management of liquidity in the banking system.
During the review period, repos worth 609.0bn/- were conducted by the bank being higher than 385.7bn/- in the preceding month and 296.0bn/- conducted in the corresponding period in 2009.
NMB launches business club
ARUSHA
ONE of the biggest banks, Nation Micro-finance Bank (NMB), has given out loans worth Tsh92 billions to small and medium entrepreneurs (SMEs).
This was revealed when launching NMB BUSINESS CLUB, a club that comprises SMEs that already have loans with the bank. However, such clubs are open to the bank entrepreneurs who do not have loans.
According to the bank, the loans are given to at least 45,000 entrepreneurs through out the country. The loans are meant to boost the small businesses and at the same time alleviate poverty.
Speaking during the launch of the club at Golden Rose here, head of small and medium entrepreneurs, Robert Pascal said the clubs will serve as points where the entrepreneurs who are the bank's clients meet.
“Our intention is to ensure that small-scale entrepreneurs are working hand in hand and at the same time see the businesses moving forward,” said Pascal.
According to Pascal, the clubs serve as points where entrepreneurs get some ABCs on how to run business.
“Businesses can easily grow if they are run professionally, no wonder we have these clubs to help the entrepreneurs achieve their goals,” noted the head.
For his part, head of business development unit, Kees Verbeek, said the clubs are of great importance to entrepreneurs.
“The entrepreneurs are going to get education based on their needs,” said Verbeek.
According to Verbeek, club members would find it easier to make joint proposals for loans, tax, education on how to move forward and other needs that the members may deem as necessary.
In total, Verbeek said, NMB has dished out loans worth Tsh700 billion.
Apart from the club in Arusha, another has been launched in Moshi and soon another will be launched in Tanga.
The clubs, according to the bank would be launched in all the regions.
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