The Bangladesh Bank has granted extension for the repayment period of a $200 million loan to Sri Lanka by six more months until September later this year amid the recovery of the South Asian country from its devastating economic crisis.
The central bank made the decision at its board meeting on Thursday.
The central bank lent $50 million to Sri Lanka for the first time in August 2021.
Later, it provided another $150 million in two phases.
The debt-burdened Sri Lanka was supposed to repay the loan within March this year.
Sri Lankan central bank Governor Nandalal Weerasinghe in a meeting with Bangladesh Bank Governor Abdur Rauf Talukder last October also said they would repay it on time.
In the monetary policy for FY23, the central bank projected private sector credit growth at 14.10% until June next, which was 14.80% in the previous edition of the monetary policy.
According to the latest data by the central bank, the growth rate hovered near 14% in the first five months of the ongoing fiscal year -- 13.97% in November, 13.91% in October, 13.93% in September, 14.07% in August and 13.95% in July 2022.
Besides, the net government borrowings from banks stood at Tk32,249 crore in the first six months of FY23.
The Bangladesh Bank used to announce half-yearly monetary policies before the pandemic.
In FY20 and FY21, it announced the policy for a year.
This year the central bank has returned to its normal way.
The recently visited delegation of the International Monetary Fund also suggested the announcement of monetary policy twice a year.
