The Government of Bangladesh is reportedly considering raising the purchase limits on savings bonds, according to Finance Secretary Dr. Md. Khairuzzaman Mozumder. Speaking at a seminar titled “Bond Market Development in Bangladesh: Challenges and Recommendations” on Monday, 26 January, Dr. Mozumder indicated that a new policy decision on savings bonds could be imminent.
“Given the current economic climate, the government is contemplating an increase in the ceiling for purchasing savings bonds,” he stated. “This measure aims to encourage greater investment from both individuals and institutional investors, making savings instruments more attractive and accessible.”
During the seminar, Bangladesh Bank Governor Dr. Ahsan H. Mansur emphasised the importance of a more liquid and efficient bond market. “If bond trading is simplified, the domestic bond market could expand to as much as 6 trillion taka,” he said. Dr. Mansur noted that larger commercial enterprises cannot rely solely on traditional bank financing. To meet their funding requirements, they would either need to attract foreign investment or participate more actively in the bond market.
He further highlighted the close link between the bond market’s sustainability and macroeconomic stability. “The future of the bond market largely depends on controlling inflation and establishing a uniform interest rate. Introducing a standardised interest rate would ensure long-term stability,” Dr. Mansur added.
Economists have welcomed the potential changes, suggesting that increasing the purchase limits on savings bonds could stimulate domestic savings and reduce reliance on bank loans. Such reforms are also expected to encourage institutional investors to diversify into the capital market, thereby strengthening the financial ecosystem.
For a clearer understanding, the following table outlines the current and proposed purchase limits for savings bonds:
| Investor Category | Current Limit | Proposed Limit (Potential) |
|---|---|---|
| Individual Citizens | BDT 3,000,000 | BDT 5,000,000 |
| Corporate Entities | BDT 50,000,000 | BDT 100,000,000 |
| Annual Interest Rate | 6.5%–7% | May vary depending on market conditions |
Analysts suggest that these proposed reforms, combined with improved bond market accessibility, could increase investor confidence, attract foreign capital, and reduce over-reliance on banking credit. By enhancing the attractiveness of savings bonds and creating a more transparent trading environment, the government aims to promote long-term economic stability.
Both the Finance Ministry and Bangladesh Bank appear committed to modernising the country’s bond and savings instruments, creating a more robust and diversified financial market. Investors and financial institutions alike are expected to benefit from a more flexible regulatory framework that encourages participation in both domestic and international capital markets.