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Govt slashes bank borrowing by 26pc

FE Report | Published: June 13, 2019 09:24:32 | Updated: June 15, 2019 10:40:49


Picture used for representational purpose

The government has scaled down its bank borrowing target by more than 26 per cent for the outgoing fiscal year (FY), mainly due to the lower implementation of the annual development programme (ADP).

The ministry of finance (MoF) has already lowered the government's bank borrowing target for the FY 2018-19 down to Tk 309.08 billion from the original Tk 420.29 billion, said an official familiar with the government debt management activities.

"The government has revised bank borrowing target for the FY'19 because of lower execution of the ADP and the higher sale of its savings instruments in the recent months," the official said.

The implementation of ADP reached 55 per cent during the July-April period of this fiscal.

The official said higher sales of national savings certificates has also contributed to the slashing of the government's original banking borrowing target for this fiscal.

The government's net borrowing from savings certificates rose by 8.24 per cent to Tk 397.33 billion during the July-March period of the FY'19.

The figure was Tk 367.09 billion in the same period of the FY'18, according to the official figures.

Meanwhile, the net bank borrowing of the government stood at Tk 139.50 as on May 26, 2019, according to the BB's confidential report.

siddique.islam@gmail.com

 

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