The government plans to amend the existing sovereign guarantee guidelines to streamline the process and mitigate fiscal risks if public entities fail to make repayments on time, according to a finance ministry report.
Projected fivefold rise in losses demands proper response
The overall losses of state-owned enterprises in Bangladesh may rise by nearly five times in the current fiscal year compared to the previous year, according to a projection by the government.
Eight state-owned enterprises (SOEs) of Bangladesh had a combined default loan of Tk 183.62 crore in February, official figures showed.
The highest loss, at Tk 6,118 crore, was incurred by the Bangladesh Power Development Board (BPDB) in July-April of the fiscal year. Its provisional loss was Tk 11,163 crore in the full year of 2022-23.
State-owned enterprises (SOEs) in Bangladesh will likely incur collective losses of Tk 14,703 crore in the coming fiscal year, according to the finance ministry.
