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No Need for Foreign Loans Through 'Sycophancy': BB Governor
Bangladesh Bank Governor Ahsan H. Mansur stated on 4 March 2025 that Bangladesh’s improved balance of payments and strong foreign savings position eliminate the need to seek foreign loans through “sycophancy.”
"Our external financial position is now very strong, and we will not compromise on this," the Governor declared during a roundtable discussion titled Path to Recovery for the Banking Sector, organized by The Business Standard at its office in Dhaka.
Mansur emphasized that increasing revenue is the key solution to addressing the government's budget deficit. "If we can boost our revenue, we will not need to rely on the IMF. I have already communicated to the IMF that we no longer need their assistance," he said.
The Governor further highlighted Bangladesh's positive economic indicators, noting that remittance income for this fiscal year is expected to approach $29 billion. "Additionally, with export earnings projected to reach $50 billion, we anticipate an extra $10 billion even after accounting for imports," he added.
While optimistic about the country’s financial standing, Mansur pointed out challenges in the banking sector, particularly the stagnation of private sector savings and sluggish bank deposit growth. "The growth in private sector savings is not where we would like it to be. However, if we can further improve the balance of payments, that will naturally support the growth of savings," he explained.
He also emphasized that the balance of payments, which was negative during the previous government’s tenure, has turned positive under the current administration. "Our foreign savings have increased due to the positive current account balance," Mansur noted.
To strengthen the financial sector, the Governor stressed the need to attract more deposits, particularly from Bangladeshis living abroad. "We need to enhance efforts to bring expatriate deposits back to the country. This could be through offshore banking units or the stock market," he suggested. "Banks can play a significant role in mobilizing deposits through these channels, helping inject much-needed cash flow into the economy."
"If we can achieve this, our balance of payments will become even stronger," Mansur concluded, underscoring the importance of fostering greater savings and financial integration within the private sector.