In the instance that MTB maturities fall on a lunar holiday (Eid, Ashura, etc.), and to ensure that MTB investors are treated fairly and are protected from the potential loss of profit due to lunar holidays, PBA had requested SBP and the Ministry of Finance (MoF) to formally establish a protocol at the time of announcement of the auction calendar.
The PBA Sub Committee on Treasury and Capital Markets had advised SBP that the maturity dates of MTBs be preponed to the last working day before the holiday, in which case the maturity price would be adjusted accordingly as well.
SBP has responded to PBA, agreeing that a better planned calendar for announcement of MTB auctions is most essential and has approved PBA’s suggestion, requesting PBA to share an auction calendar option created on the possible lunar dates, on a year to year basis. That will provide the basis on which SBP will subsequently suggest an auction calendar and MTB maturities to MoF.