Govt Bank Borrowing
Fin min proposes to introduce cash management bill
The finance ministry has proposed to introduce a short-term cash management bill to facilitate the government on emergency-basis bank borrowing so that it (government) would be able to avoid the cash mismatch, said officials of the Bangladesh Bank.
They said that the MoF had proposed to introduce the new window to facilitate the government as it had earlier imposed separate caps on government borrowings from the BB through the overdraft current and the Ways and Means advances in line with the conditions of the International Monetary Fund.
Besides, the BB will propose at the next CDMC meeting to increase the authority of the securities auction committee.
The government’s cash and debt management committee will take decision in this regard on December 30 in its quarterly meeting.
The CDMC is a high-powered committee chaired by finance secretary, which usually takes the government’s cash and debt management related decision.
The government is now allowed to receive maximum Tk 4,000 crore through Ways and Means advances, and Tk 4,000 crore through drawing the overdraft.
The government earlier could receive any amount of loans from the BB at any moment, but the CDMC in its last meeting held on October 23 imposed the cap of Tk 4,000 crore through the overdraft (current).
-With New Age input
