Bangladesh is anticipated to receive $1.02 billion in budget-support credits from three foreign lenders, aiming to address the government’s deficit financing, next month. The injection of funds from these external borrowings in US dollars is expected to alleviate the burden of increasing local borrowings and ease pressure on the country’s foreign-exchange reserves amidst global economic challenges. The Ministry of Finance, in collaboration with the Economic Relations Division and other officials, is actively working on streamlining the proposed budgetary support within the final month of the current fiscal year. The Asian Development Bank (ADB) has already concluded negotiations for a $400 million loan, while negotiations with Japan for a $250 million budgetary support package and with the Asian Infrastructure Investment Bank (AIIB) for another $400 million are nearing completion. These financial inflows are crucial for managing the budget deficit, reducing reliance on local borrowing, and sustaining the country’s fiscal stability.
BD Expects $1.02B Budget-Support Credits from Foreign Lenders
Economic Tag: Debt
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