According to Bangladesh Bank data, the net sales of savings certificates in April reached TK581 crore, marking the highest figure for the current fiscal year (FY23). However, the net sales for the first 10 months remained negative at Tk3,579 crore due to government borrowing against repayments. Lower interest rates, investment conditions, and higher inflation have contributed to the decline in sales. The government has reduced borrowing from savings certificates to alleviate interest expenses and adhere to advice from the International Monetary Fund (IMF). However, stakeholders caution that government debt may increase in the coming months. Despite this, the government plans to further reduce borrowing from savings tools in the next fiscal year (FY24). Former Bangladesh Bank governor Salehuddin Ahmed has opposed the government’s stance on reducing borrowing from savings certificates and cutting interest rates, emphasizing their direct benefits to the people and the retention of interest money within the country.
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