UNB, Dhaka

Government borrowings from the banking system were unusually high in 2007-08 compared to recent trends as it grew more than 30 percent, despite a substantial 32 percent decline in credit to other public sector.
“Increased spending on food, fuel and fertilizer might have stimulated the borrowings from the banking system,” a senior Bangladesh Bank official told UNB yesterday.
According to the latest figures the central bank reviewed late last week, net credit to the government sector increased to about Tk 47,000 crore at the end of June this year from Tk 36,000 crore at the end of June last year. [Read more]