The government of Bangladesh has reduced its target for borrowing from savings certificates by 49% for the fiscal year 2024. The new target is set at Tk18,000 crore, down from Tk35,000 crore in the original budget for the current fiscal year. This reduction is aimed at cutting government expenditure on interest and aligning with the recommendations of the International Monetary Fund (IMF). The IMF suggests that savings certificate borrowing should constitute one-fourth of the total debt. The move may impact middle-income individuals and pensioners who consider savings certificates a safer and more profitable investment option. Economists argue that reducing borrowing from savings certificates would adversely affect the middle class. Former Bangladesh Bank governor, Salehuddin Ahmed, opposes the government’s agreement to the IMF’s conditions, stating that savings certificates directly benefit the people and keep the interest money within the country.
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