Bangladesh Bank Governor Fazle Kabir has said that the banks will not have any problem if the government takes loans from banks to meet the budget deficit.
The governor said this at the proposed budget-post virtual press conference for the fiscal year 2020-21 on Friday (June 12).
He said, there is a surplus of Tk 1,13,000 crore liquid cash in the banking sector now, along with reserve of Tk 62,000 crore. Therefore, any borrowing from the government won't hurt the banking sector.
The governor also said, there would be no problem in implementing the incentives to deal with the financial losses caused by the coronavirus fallout.
The governor further said a fund of Tk 40,000 crore has been provided for the government’s refinancing scheme programs. Additionally, CRR (Cash Reserve Requirement) has been waived.
Regarding the increase in excise duty in the budget, the governor said that it has been increased only for those who have deposited Tk 10 lakh and above.
He also mentioned that the government has planned to borrow Tk 84,983 crore from the banking sector to meet the deficit in the proposed budget.
