SINHALA Govt. debt for private banks has doubled....!!!

Govt. debt for private banks has doubled
Wednesday, 14 July 2010 02:08


Government's data indicates that the amount of credit obtained from commercial banks by the private sector during the month of May has increased by Rs. 7.7 billion from Rs.1,242.2 billion to Rs.1,249.9 billion rupees in relative to April. In the meantime government’s borrowing from the private sector has doubled.

Loans denominated in rupees rose to 1,098.2 billion rupees in May from 1,093.7 billion a month earlier, while foreign exchange denominated loans increased to 151.7 billion rupees from 148.4 billion rupees.

As such, a government borrowing has increased from Rs.444.8 billion to Rs.463.3 billion. The credit which was discharged by Central Bank to the government has increased up to 106.9 billion rupees for May in comparison to 106.4 billion rupees for April. During May Central Bank acquired 62.5 million dollars from the market. The increase of government's borrowings from commercial banks became a hindrance to the growth of our country's economy. Therefore budget gap was decided to be reduced up to 0.8% for this year under a deal with the International Monetary Fund.

LANKATRUTH.COM