According to the BIBM report, private commercial borrowing from foreign sources nearly trebled between 2013 and 2017. In 2013, $4 billion was taken in loans by the private sector from foreign creditors, and the amount stood at more than $11.30 billion last year – which is a 24% increase. “Many countries faced crisis after taking foreign loans for private sector. The interest rate on foreign loans is tagged with the London Inter-bank Offered Rate (LIBOR), the global standard interest rate. Former Bangladesh Bank executive director and BIBM’s Supernumerary Professor Yasin Ali also emphasized Bangladesh Bank’s vigilance to ensure that foreign credits were not misused.

Source: Dhaka Tribune April 26, 2018 15:11 UTC