Metropolis Desk-
According to the Bangladesh Bank’s forecast, mid and long-term foreign credits secured by the private sector will see a 42.6 percent decline in loan repayments by 2023.
There is no need to be complacent about the decline in debt payments, according to economists.
Recently, there has been a significant decline in the financial account of the balance of payments, which has caused a serious issue for the economy.
When the financial account is in deficit, there is a significant difference between the inflow and outflow of foreign currency.
Due to the volatile state of the foreign exchange market, foreign lenders are reluctant to provide loans to the private sector in Bangladesh.
The government is cautious before accepting new foreign loans because interest rates on loans have significantly increased.
The rapid decline in the value of the local currency has increased exchange rate risk in the private sector.
The steep decline in the value of the local currency has forced businesses that took out loans two years ago to pay more.
