Minister of Finance: No decision yet on loans to the private sector on the foreign exchange reserve

“The government has decided to lend on the foreign exchange reserve only to public sector entities”

The government has not yet decided to lend funds to the private sector from the country’s foreign exchange reserve, said Finance Minister AHM Mustafa Kamal.

“So far, we have not taken any decision to grant loans to the private sector from the foreign exchange reserve,” Kamal told reporters on Wednesday, while briefing them on the work of the Cabinet Committee on procurement. public.

However, he also said that the government decided to lend funds from the foreign exchange reserve only to public sector entities.

“But no political directives have been formulated in this regard. Government entities will get the fund once a policy is formulated and the issue is integrated into the policy, ”he added.

The words of the Minister of Finance come in the context of a recent government decision to finance the development project of the port of Payra from foreign exchange reserves.

The number of private companies, especially those in the power sector, sued the government to allow the Bangladesh Bank to lend them from the foreign exchange reserve.

Defending the government’s decision, Kamal said it was like transferring public funds from one hand of the government to the other.

“It’s good to finance public sector projects from the government fund because it will be less expensive,” he added.

Referring to a decision of the Cabinet committee on economic affairs, the finance minister said the committee approved a proposal from the Ministry of Maritime Transport on equipment dredging and maintenance of the Ranadabad canal of the port project of Payra, which will be implemented with government funds by awarding a contract to a bidder through the direct procurement method (DPM).

Previously, it had been proposed to implement the project under a public-private partnership.

The committee also approved a proposal from the Bangladesh Agriculture Development Corporation (BADC) under the Ministry of Agriculture to purchase 800 tonnes of standard JR-524 jute seeds from the National Seed Corporation (NSC) of India via the direct purchase method.

The Minister of Finance said that Bangladesh has always been successful in achieving economic growth.

Bangladesh would have been the 5th Asian tiger if the Covid-19 situation had not occurred, he added.

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