During the final 62 days of the last financial year, Bangladesh Bank covertly provided approximately Tk41,000 crore in loans to the government, despite a central bank policy against such direct lending to manage inflation, which was at 11.66% overall and 14.10% for food prices in July. Previously, the bank had announced it would halt direct loans to control money supply and inflation. The central bank’s report shows that the government had already received Tk6,457 crore in loans before this covert transaction. In the fiscal year 2022-23, out of Tk122,980 crore loaned to the government by the banking system, Tk97,684 crore came from Bangladesh Bank. For the fiscal year 2023-24, the net debt from the banking system stands at Tk94,282 crore, with Tk97,927 crore from commercial banks. Additionally, loans in the overdraft sector, which had a limit of Tk6,000 crore, were increased to Tk12,000 crore, with Tk48,745 crore outstanding as of June. This lending, done without adhering to regulations, has contributed to inflation and raised concerns about financial irregularities.
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