Pvt sector credit growth rebounds

Private sector credit growth rebounded in February 2015 over the previous month despite political uncertainty, officials said.

The growth in private sector credit flow rose to 13.61 per cent in February from 13.33 per cent in January. It was 13.50 per cent in December, reports the Financial Labour_IndustryExpress.

“We expect that the upward trend of private sector credit growth will continue in the coming months, if the political stability continues,” Dr. Biru Paksha Paul, chief economist of Bangladesh Bank (BB), told the FE on Tuesday.

Mr Paul also said it’s a business friendly nation, so that investment will gradually grow here.

The BB chief economist also suggested the government for taking necessary measures to improve the overall governance issues for facilitating the country’s business activities.

The total outstanding loans with the private sector rose to Tk 5455.34 billion in February 2015 from Tk 4801.76 billion in the same month of the previous calendar year, the BB data showed.

Senior bankers, however, said the demand for fresh credit is still in an unsatisfactory level, as most businessmen are maintaining a ‘go-slow’ policy to avoid financial risk.

“But the private sector credit growth increased slightly in February because of higher import of capital machinery, particularly of garment as well as power and energy sectors,” a senior official of a leading private commercial bank explained.

Garment industry machinery import increased by nearly 19 per cent to US$305.43 million during the July-February period of current fiscal year (FY), 2014-15, from $257.04 million of the corresponding period of the previous fiscal, while import of energy and power sector rose to $324.63 million from $257.87 million


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