Govt Plans to Recover $16 Billion in Laundered Assets

The interest rates on treasury bills in Bangladesh have dropped to 10-10.35% in February 2025, down from 11.97% in December 2024, driven by higher bank investment in government securities and a reduction in the government's borrowing target.

Yields on Bangladesh's government securities have sharply declined in February, with rates falling nearly two percentage points since December, reaching just over 10%. In the latest auctions, banks submitted bids significantly exceeding government targets—Tk22,389 crore for a Tk4,000 crore five-year bond and Tk8,072 crore for a Tk3,500 crore 91-day bill—forcing the central bank to lower rates to 10.47% and 10.35%, respectively.

The government has reduced its bank borrowing target by 28% to Tk 990 billion for FY2024-25, down from Tk 1,375 billion, due to lower expenditures and slow ADP implementation, which stood at 18% in the first half of the fiscal year.

Bangladesh’s Purchasing Manager Index (PMI) rose to 65.7 in January, up by four points from December, marking the fourth consecutive month of expansion. The growth was driven by the agriculture, construction, and services sectors, while manufacturing expanded at a slower pace.

The government has allocated Tk 2.32 billion for the rehabilitation of victims of the July uprising, as announced by Disaster Management and Relief Adviser Faruk-E-Azam. Families of the deceased will receive Tk 1 million in savings certificates, while injured victims will be compensated with Tk 300,000, Tk 200,000, or Tk 100,000, depending on the severity of their injuries.

The interim government plans to send teams to Dubai and other tax havens to identify and repatriate illicit assets owned by Bangladeshis. Finance Adviser Salehuddin Ahmed highlighted the need for concrete evidence but acknowledged that not all laundered money might be recovered.