Dhaka, Jan. 5 -- Private companies should pursue a "wait-and-see policy" before going for foreign borrowing as interest rate spiked on the global financial market nowadays, economists suggest. Many firms are on the hunt for forex support.

The cost of foreign funds has increased up to nearly 11 per cent as the secure overnight financing rate (SOFR) is now hovering around 5.39 per cent. Foreign lenders can add up an additional interest of up to 3.5 per cent to the SOFR.

Moreover, a 20-percent "withholding tax" has been imposed in the current fiscal budget on interest payments for foreign loans.

However, as the interest rate on foreign loans remained high, the government last month declared a waiver on the "withholding tax" on interest pa...