New law coming on government debt management

New laws are being introduced to manage public debt, including public-private partnerships (PPPs), investor financing, and G-to-G (government-to-government). Therefore, the cabinet has approved the draft of ‘Government Debt Act, 2021’ in principle.

The approval was given today (March 9) at a virtual cabinet meeting chaired by Prime Minister Sheikh Hasina. The ministers attended the meeting via video conference from Ganobhaban to the Prime Minister and the Cabinet Division at the Secretariat. After the meeting, Cabinet Secretary Khandaker Anwarul Islam announced the approval at a press briefing.

He said, “There was the Public Debt Act of 1944, we were going through it. That law has been amended, supplemented, modified and updated to prepare the draft Government Debt Act. In accordance with the provisions of Section 21 of the Government, Government Finance, Budget Management Act, 2009, the Government budget deficit is covered by the Government to cover the deficit or for any other purpose. The draft law states that any loan / investment can be collected.

The Cabinet Secretary said, “The draft law proposes to include provisions related to government debt collection process, provision of state guarantee, role of government debt office, Shariah-based government security management as per requirements.” Provisions have been made for protection and punishment.

Provision has been made for imprisonment for a maximum of six months or a fine of up to Rs 100,000 or both. ‘ Anyone involved in government debt activities will be punished for breaking the law. Complaints have to come from the Directorate of Savings or Bangladesh Bank. ‘

He added, “If the bill is passed, it will make it easier for the debt management departments of the Bangladesh government to take a more modern approach to debt collection, formulate sustainable credit policies and plans, prepare loan strategies, assess debt risks, prepare budgets and calculate direct and hidden government liabilities.” Yes. It will be transparent and extended. ‘

‘Debt management, budgeting or financing systems have changed a lot. As PPP is coming now, investor credit, deficit financing, which needs to be further priced for these. ‘

These have been included in the new law. Everyone’s responsibilities and their management system, re-payment system, everything will be clear. Until now, these were handled with rules. ‘

Sunbd/NJ