Freetown, SIERRA LEONE – In a noteworthy revelation from the Auditor General’s 2022 Annual Report, domestic borrowing issued experienced a substantial surge of SLE 9,152,915, marking a staggering 114.89% increase from SLE 7,966,629 to SLE 17,119,544 in 2022.
This surge in domestic borrowing reflects a dynamic composition of Short-Term Securities, including treasury bills amounting to SLE 9.2 billion, Ways and Means Advances totalling SLE 111 million, and Long-Term Securities of SLE 2.7 billion, primarily in the form of treasury bonds.
Breaking down the figures, the Auditor General highlighted that Treasury Bills accounted for SLE 9,349,872, showing a significant increase from SLE 7,237,540 in 2021. This sum represents the total amount of treasury bills issued during the year, covering 91-Day, 182-Day, and 364-Day Treasury Bills. The report further revealed that the total worth of redeemed Treasury Bills during the year reached SLE 7,191,994 Thousand, compared to SLE 5,806,430 Thousand in FY2021. The outstanding amount of treasury bills at the end of FY2022 stands at SLE 9,145,934 million, compared to SLE 7,196,473 Thousand at the end of FY2021.
Concerning One-year Treasury Bonds, no further issuances occurred during the period, as all outstanding bonds from previous years were successfully redeemed. Additionally, Bridging Loans obtained from the Bank of Sierra Leone during FY2022 were fully repaid, resulting in no outstanding balances at the end of the financial year.
Similarly, the net decrease in Ways and Means given by the Bank of Sierra Leone to finance Government operations amounted to SLE 84,942 Thousand. This led to a closing bank balance of SLE 111.2 Thousand, repayable in the ensuing year.
In the realm of Long-Term Securities with more than one-year maturity, SLE 1,743,717 million represents the long-term securities issued in the form of treasury bonds during FY2022, compared to SLE 711,714 Thousand in FY2021. The total worth of redeemed Long-Term Securities for the year reached SLE 450,675 Thousand, compared to SLE 690,879 Thousand in FY2021.
The report disclosed that the total outstanding amount of long-term securities held as 1.5-Year, 2-Year, 5-Year, and 10-Year Treasury Bonds at the end of FY2022 is SLE 2,713,146 Thousand. This amount is held by the Bank of Sierra Leone (SLE 2,566,578 million) and NASSIT (SLE 146,569 million).
Furthermore, the Special Marketable Securities held by the Bank of Sierra Leone, totaling SLE 1,994,747 million as of December 31, 2022, includes 3-Year Treasury Bonds (SLE 1,081,500 million), 5-Year Treasury Bonds (SLE 367,990 million), and 10-Year Treasury Bond (SLE 552,258 million). These treasury bonds, as outlined in a Memorandum of Understanding with the Government since October 14, 2006, are converted from Non-Marketable, Non-Interest-Bearing Securities to Special Marketable Securities for the capitalisation of the Bank and monetary purposes. It’s crucial to note that the interest cost of financing operations and the total amount payable at redemption will be borne by the Government. ZIJ/16/1/2024