South Sudan’s central bank has introduced a Treasury bill program on Wednesday after it could not succeed in 2012 because commercial banks were not paid their interest.
A Treasury bill (T-Bill) is a short-term debt obligation backed by the government with a maturity of less than one year.
Central Bank Governor Kornelio Koryom said in a press conference that the newly introduced program is important, saying those who buy Treasury bills will benefit and that the government will pay them interest.
“I wanted to tell you that this is a secondary launching of Treasury bills. We did it in the year of 2012 and it continued up to 2013, but we didn’t organize it in the same way we have done it today,” said Koryom.
“I am not saying that it is going to get away the problem we had, but it is going to minimize it if we are going to do it in the most effective way. So all of us should get committed to it, then elements of inflations in the economy will be avoided,” he added.
The governor pointed out that the finance ministry through the central bank will be issuing short-term debt instruments of Treasury bills through a consistent process for the next three years by budgetary processes for business people, corporate bodies, companies, NGOs and individuals.
He pointed out that the instruments will be issued on short-term basis for one year as investment tenure. The Treasury bills are issued in maturities of 91,182, and 364 days, according to Koryom