Arafat Ara

The net sales of savings certificates showed a negative growth in December last due to high encashment than purchase by the savers, officials said.

The net sales of the government's savings instruments witnessed a minus growth at Tk 2.07 billion last month.

The overall net borrowing from the savings certificates stood at only Tk 1.77 billion in the July-December period of fiscal year 2012-13, according to the Directorate of National Savings (DNS).

The amount is much below the fiscal target. The government's internal net borrowing from the savings tools has been fixed at Tk 74 billion in the current financial year.

A concerned official said without attractive incentives for the savers, the target of sales volume will not be achieved. "To reach the goal the minimum net sales should be Tk 6.0 billion a month.

A recent proposal to enhance the interest rates on different savings instruments now awaits the finance ministry's nod, said the official.

The rates of interest have been proposed on various savings tools by 1.0 per cent to 1.50 per cent which are expected to come into effect either from February 1 or March 1 next, he said.

"We are hopeful the sale will increase significantly after introduction of new rates of interest," he said.

The banks were offering more attractive incentives than savings certificates which allured the investors to depositing money with banks, he added.

The government's net borrowing from savings schemes was Tk 4.78 billion in the last fiscal year against the target of Tk 35 billion.