Net foreign financing fell by 67% to Tk 5,540 crore in July-November FY25, a decline of Tk 11,086 crore from the same period in FY24, as loan repayments outpaced inflows. Bangladesh Bank cleared $3.3 billion (90%) of overdue foreign payments after the August 2024 political shift, while lenders tightened disbursements. The Taka’s 30% depreciation over two years increased repayment costs, further straining government finances. Government net borrowing from banks stood at Tk 14,642.54 crore in July-December, 14.8% of the revised Tk 99,000 crore FY25 target. Borrowing from National Savings Certificates dropped by Tk 15,588.6 crore in July-November FY25, compared to Tk 5,539 crore in FY24. Liquidity tightened due to rising NPLs, slow loan recovery, and deposit stagnation. Contractionary monetary policies worsened the situation, reducing private sector credit growth to 7.3% in December 2024. The financing shortfall threatens economic stability, investment, and growth prospects.
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