Govt’s bank debt increased by Tk 75000 cr in a year

Staff Correspondent: Due to the financial crisis, the amount of borrowing from the banking sector to the government is increasing. As of October, this year, the government’s debt status in the bank sector stands at Tk 2 lakh 83 thousand 614 crore. In the same period last year, its amount was Tk 2 lakh 8 thousand 949 crore. As a result, the government’s debt to the bank has increased by Tk 74 thousand 665 crore in the last one year. This information is known from the sources of Bangladesh Bank.
On the other hand, at the end of September this year, the outstanding debt in the private sector stood at Tk 13 lakh 79 thousand 413 crore. During the same period of the previous year, the loan position was Tk 12 lakh 10 thousand 722 crore. In the space of one year, the amount of loans in the private sector has increased by Tk 1 lakh 68 thousand 691 crore.
According to Bangladesh Bank, private sector credit growth is lower than Bangladesh Bank’s estimates. In the monetary policy announced for the current financial year 2022-2023, the target of credit growth in the private sector is set at 14.10 percent. The previous fiscal year 2021-2022 estimated 14.80 percent. It is known that in January this year, the growth of private sector loans exceeded 11 percent. Credit growth slowed to 10.72 percent in February. Then 11.29 percent in March, followed by a steady increase in credit growth. Private credit growth rose to 13.95 percent in July.
Meanwhile, Bangladesh Bank has taken several steps to solve the dollar crisis. Even then, the reserve crisis is not over. Currently, the country’s reserves stand at 35.80 billion dollars. At the same time, the amount of bank deposits has decreased. At the end of last June, the total amount of deposits of the banks stood at Tk 16 lakh 24 thousand 471 crore.
Meanwhile, due to load-shedding and fuel shortages, the production volume is lower than before. This has reduced the amount of product imports. Last September, LC opening fell to $5.7 billion from $6.33 billion in the previous month. Last June, LC opening was $8.44 billion, which fell to $6.35 billion in July.