Central Bank gate. | File/Courtesy.

The Bank of South Sudan announced plans to auction 10 billion South Sudanese pounds to eligible banks through the Term Deposit Facility Operation.

The Bank said the auction for interested commercial banks will be held on Wednesday, July 19.

A term deposit facility is a deposit where money is held for a certain duration with a pre-defined payment and interest rate.

The interest on the Term Deposits is payable at the end of the pre-agreed interest rate.

In a circular issued on Friday, the Central Bank said the bidding banks would make upfront payments on auction day.

The maturity days for the deposit are divided into three periods: 14 days, 28 days, and 84 days.

The first maturity date is August 1; the second comes on August 15, with October 10 being the final maturity date for the term deposits.

Each period has been allocated a different amount, with 3 billion in the first period, 5 billion in the second period, and 2 billion in the final phase.

As per the terms and conditions of the term deposit, an early termination or withdrawal of funds attracts a 25 percent early termination penalty.