Govt to issue bonds worth Tk25000cr to settle dues of fertiliser, power

The authority is going to issue bonds worth Tk25,000 crore to clear debts from outstanding fertiliser and electricity subsidies.

Already bonds worth Tk5000 crore have been given to four banks. The remaining Tk20,000 crore bonds will be disbursed gradually this year. However, the government will have to pay eight percent interest against the bond.

According to sources in the finance department, the subsidy documents of Tk26,000 crore rupees have already been deposited in the finance department for the fertilizer and electricity. The subsidy was paid in cash till October last year. However, at this moment it is not possible to do so due to financial crisis. As a result, banks are now being subsidized through bonds.

Sources said Islami Bank received Tk2,400 crore, Sonali Bank Tk 255 crore and IFIC Bank received Tk 459 crore for the fertilizer. Apart from this, bonds of Tk1,985 crore were given to City Bank and Tk 77 crore to Pubali Bank for the payment of electricity dues.