Govt to Borrow Tk 145000 Crore from Banks

Industry: Bank, Financial
Economic Tag: Debt

Due to slow revenue collection, the government is struggling to meet expenses and plans to borrow Tk 145,000 crore from banks over the next three months, primarily through short-term loans exceeding Tk 100,000 crore. A study shows that the government aims to borrow Tk 137,500 crore this fiscal year, with Tk 72,682 crore as long-term loans and Tk 64,818 crore as short-term loans. In the next three months, the government plans to raise Tk 144,400 crore through treasury bills and bonds, with Tk 106,000 crore as short-term loans and Tk 38,400 crore as long-term loans. The government intends to borrow Tk 34,000 crore in October, Tk 32,000 crore in November, and Tk 40,000 crore in December through various auctions. By September 23, the government’s loan balance from commercial banks increased to Tk 358,967 crore, up from Tk 318,441 crore at the end of the previous fiscal year. The net borrowing from banks in the first two months of this fiscal year amounted to Tk 40,525 crore, reflecting a Tk 15,286 crore increase from the previous year. As banks face liquidity crises, borrowing from them could hinder the private sector’s access to necessary loans.

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