Dhaka, Bangladesh (BBN) – The Bangladesh government borrowing from the banking system has decreased following the repayment of a considerable amount of debt to the Bangladesh Bank (BB), officials said.
A total of BDT 32.00 billion, which was collected as license renewal fees from the mobile phone operators, was deposited by some commercial banks with the government’s accounts through the central bank of Bangladesh on December 7 last.
The government borrowing from the banking system came down to around BDT 160 billion on December 20 last after the repayment, a BB senior official said, adding that the declining trend of government may continue in the near future.
The government’s borrowing from the banking system during the July-November period of the current fiscal year (FY) had exceeded the total borrowing target of BDT 189.57 billion, set for the entire FY’12.
Its borrowing from the banking sources reached BDT 198.05 billion as on November 30, 2011, the BB data showed.
The central bankers said such excessive borrowing from the banking system by the government was the result of its growing subsidy requirements particularly in energy, power, food and agriculture sectors.
BBN/SSR/AD-25Dec11-9:48 am (BST)