BB clarification
If the government borrowing increases in the end of the current fiscal year, Bangladesh Bank can manage this by using its monetary instruments and private sector credit will not be curtailed because of the government borrowing, the central bank said yesterday in a clarification following press reports.In the end-June, government expenditure may increase due to payment of large number of bills mainly for seasonal rise in annual development programme (ADP) expenditure and some additional payments for salary increase, it said. Preliminary estimate by Bangladesh Bank shows that central government's net borrowing from the banking system from end-June 2004 to end-May 2005 is still negative, the central bank added. However, government net borrowing from other sources was positive during the period. Overall government borrowing from all sources remained below the budgeted amount, it explained.
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