Bangladesh government’s borrowing from the banking system has declined by around Tk25,000 crore since fiscal year 2014-15, according to the latest Bangladesh Bank data. Usually, the government borrows from the central bank and other commercial banks to meet budget deficit. According to banking sector analysts, the government borrowing from banks has decreased due to the rise in the sale of saving certificates. They slammed the government for its reliance on the sale saving certificates to meet budget deficit. “If you look at the bank loan interest rates, they are almost half the rate of the saving certificates,” Biru Paksha Paul, former chief economist of Bangladesh Bank, told the Dhaka Tribune.

Source: Dhaka Tribune July 12, 2017 04:07 UTC