The Financial Express
The credit flow to the private sector has been on the decline since October last year as businessmen are investing cautiously in the backdrop of global economic recession.
The private sector credit growth came down to 19.84 per cent in February from 20.94 in January this year, according to the central bank statistics.
Bankers, however, expects the credit flow to the private sector to grow from the fourth quarter of this fiscal as the fiscal and monetary government stimulus packages would help mitigate the immediate effect of the global recession.
On 19 April last, the government announced an interim package worth Tk 34.24 billion for agriculture, power and export sectors.
Under the fiscal support part of the package for the April-June period of the FY 2008-09, the rates of export subsidy have been raised for three sectors, namely, jute, leather and frozen food.
"We expect that the credit flow to the private sector will increase in the last two months of this fiscal," Managing Director of the National Credit and Commerce Bank Limited (NCCBL) Nurul Amin told the FE Thursday.
The credit flow to the private sector has declined in the last five months because of a 'go-slow' policy adopted by the businessmen to avoid any financial risk against the global economic recession, the central bank officials said.
The private sector credit growth came down to 24.72 per cent in October from 26.55 per cent in September 2008.
"The credit flow to the private sector has come down close to the target, fixed by the central bank earlier, for this fiscal," a senior official of the Bangladesh Bank (BB) told the FE.
The private sector credit growth will come down to 18.50 per cent by the end of June this year, according to the BB's latest monetary policy, announced on January 14 last.
The credit flow to the private sector increased by 19.84 per cent to Tk 343.50 billion in February last on a year-on-year basis from 19.36 per cent or Tk 280.87 billion of the corresponding period of the previous year, the BB's data showed.
The BB official also said the private sector credit growth may finally exceed the target to meet the demand of fresh loans to the country's business community.
On April 7 last, the central bank governor advised the commercial banks to boost investments in thrust sectors including agriculture and small and medium enterprises (SMEs) to help mitigate the impact of the ongoing global economic meltdown.
The credit flow to the private sector has been on the decline since October last year as businessmen are investing cautiously in the backdrop of global economic recession.
The private sector credit growth came down to 19.84 per cent in February from 20.94 in January this year, according to the central bank statistics.
Bankers, however, expects the credit flow to the private sector to grow from the fourth quarter of this fiscal as the fiscal and monetary government stimulus packages would help mitigate the immediate effect of the global recession.
On 19 April last, the government announced an interim package worth Tk 34.24 billion for agriculture, power and export sectors.
Under the fiscal support part of the package for the April-June period of the FY 2008-09, the rates of export subsidy have been raised for three sectors, namely, jute, leather and frozen food.
"We expect that the credit flow to the private sector will increase in the last two months of this fiscal," Managing Director of the National Credit and Commerce Bank Limited (NCCBL) Nurul Amin told the FE Thursday.
The credit flow to the private sector has declined in the last five months because of a 'go-slow' policy adopted by the businessmen to avoid any financial risk against the global economic recession, the central bank officials said.
The private sector credit growth came down to 24.72 per cent in October from 26.55 per cent in September 2008.
"The credit flow to the private sector has come down close to the target, fixed by the central bank earlier, for this fiscal," a senior official of the Bangladesh Bank (BB) told the FE.
The private sector credit growth will come down to 18.50 per cent by the end of June this year, according to the BB's latest monetary policy, announced on January 14 last.
The credit flow to the private sector increased by 19.84 per cent to Tk 343.50 billion in February last on a year-on-year basis from 19.36 per cent or Tk 280.87 billion of the corresponding period of the previous year, the BB's data showed.
The BB official also said the private sector credit growth may finally exceed the target to meet the demand of fresh loans to the country's business community.
On April 7 last, the central bank governor advised the commercial banks to boost investments in thrust sectors including agriculture and small and medium enterprises (SMEs) to help mitigate the impact of the ongoing global economic meltdown.
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