UNB, Dhaka :
Persistently increasing outstanding debt along with high debt-service payment every year is likely to lower development finance and escalate intergenerational debt burden in the future, an independent think tank said on Monday.
In order to effectively deal with the ominous effects of debt and deficit, Unnayan Onneshan (UO) has sought adoption of a prudent debt management policy that harmonising with the macroeconomic policies will ensure growth-enhancing fiscal management in the economy.
The think tank in its monthly publication, ‘Bangladesh Economic Update’ September 2017, depicted the country’s economic scenario.
The research organisation in its eighth year of this monthly publication noted that at the end of FY 2016-17, the total outstanding domestic debt increased by 13.25 percent.
According to the most recent data, the total outstanding external debt burden increased by 10.1 percent at the end of FY 2015-16.
On the other hand, the growth rate in net foreign aid decreased to 2.10 percent in FY 2016-17 from 17.54 percent in FY 2015-16.
The think tank finds that the debt-gross domestic product (GDP) ratio is on the rise since FY 2013-14.
Referring to the recent data published by the Bangladesh Bank, it stated that the outstanding domestic debt as percentage of GDP was 15.45 percent in FY 2013-14, 15.50 percent in FY 2014-15, 15.78 percent in FY 2015-16 and 15.83 percent in FY 2016-17.
Of late, the government has been borrowing more from the non-banking sources than the banking system, primarily by selling national savings directorate (NSD) certificates at a significantly higher interest rate.
Persistently increasing outstanding debt along with high debt-service payment every year is likely to lower development finance and escalate intergenerational debt burden in the future, an independent think tank said on Monday.
In order to effectively deal with the ominous effects of debt and deficit, Unnayan Onneshan (UO) has sought adoption of a prudent debt management policy that harmonising with the macroeconomic policies will ensure growth-enhancing fiscal management in the economy.
The think tank in its monthly publication, ‘Bangladesh Economic Update’ September 2017, depicted the country’s economic scenario.
The research organisation in its eighth year of this monthly publication noted that at the end of FY 2016-17, the total outstanding domestic debt increased by 13.25 percent.
According to the most recent data, the total outstanding external debt burden increased by 10.1 percent at the end of FY 2015-16.
On the other hand, the growth rate in net foreign aid decreased to 2.10 percent in FY 2016-17 from 17.54 percent in FY 2015-16.
The think tank finds that the debt-gross domestic product (GDP) ratio is on the rise since FY 2013-14.
Referring to the recent data published by the Bangladesh Bank, it stated that the outstanding domestic debt as percentage of GDP was 15.45 percent in FY 2013-14, 15.50 percent in FY 2014-15, 15.78 percent in FY 2015-16 and 15.83 percent in FY 2016-17.
Of late, the government has been borrowing more from the non-banking sources than the banking system, primarily by selling national savings directorate (NSD) certificates at a significantly higher interest rate.
