Govt borrows Tk10,000cr off-calendar, central bank monitors liquidity
A senior Bangladesh Bank official said the government has borrowed off-calendar, likely due to the Tk20,000 crore capital injection into Sammilito Islami Bank, creating a short-term liquidity need.
The government has borrowed a total of Tk10,000 crore outside the scheduled October-December 2025 treasury bill and bond calendar, according to Bangladesh Bank officials.
Today (10 December), the government raised Tk5,000 crore through a 91-day treasury bill auction conducted outside the calendar. In addition, at the end of November, another Tk5,000 crore was raised through a five-year treasury bond auction with an interest rate of 10.55%.
"This brings the total off-calendar borrowing for the October-December quarter to Tk10,000 crore," a senior Bangladesh Bank official told The Business Standard, confirming the development.
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A senior Bangladesh Bank official said the government has borrowed off-calendar, likely due to the Tk20,000 crore capital injection into Sammilito Islami Bank, creating a short-term liquidity need. "Treasury bills and bonds are being used to manage these funds," he added.
Supporting this view, a treasury head at a private bank noted that with most government projects currently on hold, the move was primarily a fund-management measure. Another central bank official added that Bangladesh Bank is closely monitoring the situation to ensure it does not trigger inflation.
Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said it is normal for the government to supply funds in one area while borrowing in another.
"However, the scale of borrowing from the banking sector should not create distortions that could disadvantage private borrowers. As demand for private-sector loans rises, care must be taken to ensure fair access," he noted.
