‘Treasury Reserve Management crashed during previous govt’ | Daily News

‘Treasury Reserve Management crashed during previous govt’

State Minister Ajith Nivard Cabraal hands over a certificate of participation. Picture by Dinesh Perera.
State Minister Ajith Nivard Cabraal hands over a certificate of participation. Picture by Dinesh Perera.

State Minister of Capital Markets and State Enterprise Reform Ajith Nivard Cabraal noted that during his tenure as Central Bank Governor the rate of return on Central Bank reserves was as high as 6.3%. He noted that under the previous administration this rate of return had crashed to figures well below 1.5%.

Cabraal noted that the media narrative on reserve management was misleading. Cabraal sais as Governor of the Central Bank he broke the record for the highest return on reserves by earning US$ 430 million on the holdings of the Bank. During that very same year, Cabraal was summoned by the Committee on Public Accounts for the purchase of Greek Bonds that caused a loss of US$ 12 million. Cabraal called on the media moguls to paint a more holistic picture of the reserve management.

Cabraal speaking on February 22 at the Public Sector Best Annual Reports and Accounts Awards – 2020 held at the BMICH criticised the improper understanding of economics and noted the government was going to honour all it’s International Sovereign Bond commitments.