Bank borrowing triples in FY ’22

Government bank borrowings nearly tripled in the past fiscal, partly being pushed by need for financing budget deficit, officials say, raising its debt liability. Its aggregate net bank borrowings rose to Tk 727.49 billion as on June 30 last from Tk 242.92 billion in the same period of the previous fiscal year, according to Bangladesh Bank’s confidential report. During the aforementioned period, the government also borrowed Tk 70.15 billion from non-banking sources through net issuance of treasury bills (T-bills) and bonds. In FY’22, the government enhanced its bank-borrowing target by more than 14 per cent to Tk 872.87 billion on the same ground. The original target was Tk 764.52 billion for the fiscal. Official figures show that the net sales of NSCs dropped by more than 51 per cent to Tk 181.57 billion during the July-May period of the FY’22, from Tk 373.86 billion in the same period of the previous fiscal year. The bank borrowings for the FY’23 would be enhanced by nearly 22 per cent than the revised target of Tk 872.97 billion for the past fiscal year, according to the proposed budget documents.

Source: https://today.thefinancialexpress.com.bd/first-page/bank-borrowing-triples-in-fy-22-1658080399

BB lifts interest rate ceiling on NFCDs

The Bangladesh Bank (BB) on Sunday withdrew the interest rate ceiling on non-resident foreign currency deposits (NFCDs) to raise the inflow of foreign currency into the country and ease the ongoing pressure in the foreign exchange market. The central bank had earlier asked the banks to set the interest rate in line with the euro currency deposit rates. But through the circular, the BB has now made the rate competitive. The banks are allowed to avoid such ceiling to mobilise deposits from non-resident Bangladeshis and Bangladeshi-origin individuals, including those having dual nationality and residing abroad. The withdrawal of interest rate ceiling is also applicable for the foreign companies, firms registered or incorporated abroad, and banks and other financial institutions, including institutional investors. This is applicable for the 100 per cent foreign owned or A-type industrial units in the EPZs/EZs and hi-tech parks.

Source: https://today.thefinancialexpress.com.bd/last-page/bb-lifts-interest-rate-ceiling-on-nfcds-1658081091

Padma Bridge gets Tk 500m in tolls in 20 days

The Bangladesh Bridge Authority says that Padma Bridge has earned about Tk 525.5 million in tolls in the first 20 days since it was opened to traffic, reports bdnews24.com. Officials involved in the project also say that the lower level of the bridge, to be used for rail lines, will be turned over to rail authorities on Sunday. A total of 450,312 vehicles crossed the bridge in the first 20 days, according to Mahmudur Rahman, executive engineer of the Padma Bridge Site Office.

Source: https://today.thefinancialexpress.com.bd/trade-market/padma-bridge-gets-tk-500m-in-tolls-in-20-days-1658075425