The government’s austerity measures have led to a shift towards bank loans. Repayments exceeded borrowings by Tk 120 crore till January, but by February, the government’s net debt to banks rose by Tk 10,751 crore. Revenue shortfall, decreased foreign loans, and rising dollar values contribute to this. The government has borrowed Tk 45,473 crore from commercial banks and repaid Tk 34,723 crore, increasing net debt. Projects are being curtailed, foreign travel restricted, and new asset purchases halted to cut costs. The rise in Treasury bill interest rates, averaging 11.42% for 182-day bills and 12.02% for 10-year bills, impacts government and consumer interest rates. Former Bank Asia President Cha Lock Arfan Ali suggests raising tea prices and focusing on production and supply systems to combat inflation.
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