Govt’s bank borrowing hits six-year high

The government has all on a sudden stepped up its borrowing from the banking system from this month as its revenue collection fell short of expectations, sending the cash-strapped banks into a state of panic.

Until the end of April, the government did not borrow from banks; rather, it paid back Tk 1,083 crore, according to data from the Bangladesh Bank.

But from this month it started borrowing; as of May 15, it has taken Tk 7,998 crore, which is the highest in six years.