Instead of borrowing from the Bangladesh Bank (BB), the government is paying off its previous debts. As a result, the government's debt to central bank has decreased by Tk 18,250 crore in the first two months of the current financial (July-August).
However, during this time, the government has taken a loan of Tk 28,952 crore from commercial banks. As a result, the government's net debt in the banking sector stood at Tk 10,702 crore in two months. This information is known from the sources of Bangladesh Bank.
According to sources, Bangladesh Bank is not giving loans to the government by overprinting money considering the priority of inflation control. Even though this was the case earlier, Bangladesh Bank paid about Tk 41,000 crore in three months by concealing information at the end of the last government. Bangladesh Bank has given Tk 48,745 crore as 'overdraft' to the government despite a maximum limit of Tk 8,000 crore. This amount is not shown in the government's debt report.
The former lead economist of the Dhaka office of the World Bank. Zahid Hossain said that in recent times, it is seen that the previous liabilities of Bangladesh Bank are being paid from commercial banks. Which is a good move to control inflation. Information is not being hidden like before.
However, it remains to be seen how long the central bank will be able to maintain this trend. Because, the electricity and fuel sector has a large amount of arrears. These must be paid. Failure to clear the dues may create challenges in the power-fuel sector. As a result, it cannot be said that all is well. It needs more time.
Bangladesh Bank has long been saying not to give loans to the government by printing money to control inflation. In the last financial year, the government's debt to Bangladesh Bank was shown to be Tk 6,500 crore in the negative, but in the last three months, about Tk 41,000 crore was actually paid.
Which is believed to have the effect of keeping inflation down. Last August, overall inflation stood at 10.49 per cent. Inflation has hovered around 10 per cent for more than two years.
A senior official of Bangladesh Bank said that caution is being taken in the supply of currency to control inflation. One of the policies of the present government is to exercise caution in expenditure and prevent wastage. There is also a special focus on ensuring that borrowing from domestic sources does not increase too much.
He said that most of the loans coming through commercial banks are individual and institutional savings. Due to the high interest and security of treasury bills and bonds, various institutions or individuals are investing money here. Many people are now keeping money here by breaking savings certificates and bank deposits.
That is why it is not being imposed on Bangladesh Bank and banks. The central bank's liabilities are being paid first with the money coming in this way.
According to the data of Bangladesh Bank, at the end of last August, the government's debt status in the banking system stood at Tk 485,192 crore. At the end of last June, which was Tk 474,490 crore. Among the loans of the government, commercial banks have increased by Tk 28,952 crore to Tk 347,393 crore compared to last June.
And Bangladesh Bank decreased from Tk 156,048 crore last June to Tk 137,799 crore. Basically, the government is coordinating the additional money given in the overdraft sector. At the end of last June, this sector had Tk 48,745 crore. At the end of August, it fell to Tk 29,351 crore.
