In such a situation, the government’s borrowing from them would have helped. Lower development spending from the government’s fund amid the pandemic is another reason for the drop in bank borrowing, according to Hussain. Between July and December of last year, the government borrowed Tk 33,594.88 crore from the banks and repaid Tk 31,391.03 crore. Hussain, however, forecasts government’s bank borrowings to increase in the second half of the fiscal year as the state’s revenue generation is not picking up. The amount is Tk 20,445 crore short of the target for the four months of fiscal 2020-21.

Source: Dhaka Tribune January 16, 2021 18:25 UTC