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State bodies’ debt crisis triggers bailout fears

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Staff Reporter :

Fourteen high-risk state-owned and autonomous entities in Bangladesh are facing a severe fiscal imbalance, with liabilities exceeding their liquid assets by more than 60 times, according to a recent government analysis.

These entities collectively owe Tk 1,72,016.94 crore, while holding only Tk 2,837.23 crore in cash or near-cash assets, the Finance Division revealed in a statement issued on Sunday. The stark gap has raised concerns about systemic financial risk and the potential need for future government bailouts.

“This imbalance poses serious fiscal risks and demands immediate attention,” said Md Amirul Islam, a senior official from the Finance Division’s Monitoring Cell, during the official presentation of the findings.

The analysis was shared at the launch of SABRE+, a newly introduced digital platform designed to enhance financial monitoring and debt management across public sector organisations.

Integrated with the government’s core financial management system, iBAS++, the platform aims to improve transparency and accountability in state finances.

Officials warned that the financial vulnerability of these 14 entities could have broader implications for public sector stability and could significantly strain the national budget if remedial action is not taken.

The analysis also revealed a wider structural issue. A total of 101 state-owned and autonomous entities were reviewed, with combined liabilities amounting to Tk 639,782.58 crore. More than a quarter of this debt is linked to subsidiary loan agreements, further complicating the fiscal outlook.

The findings underscore the urgency of financial reform and stronger oversight mechanisms to mitigate mounting risks in the public sector.

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