Abu Sazzad :
The central bank has set a ceiling for the private-sector credit growth at 14.30 per cent for the first half of the current fiscal 2015-16 (July-December), as per the latest monetary policy statement (MPS).
Credit expansion to the private sector declined due to lower trade financing by the commercial banks. The private sector credit growth stood at 13.22 per cent in October.
Credit flow in the private sector was Tk 5,94,677.40 crore in October 2015 compared with Tk 5,25,233.30 crore during the corresponding period of the last fiscal.
Actually, the business people suffer in doing business because of inadequate gas and electricity connection. Political unrest and uncertainty are another reason of short of target.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
Large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
They said that the large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
“Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth,” said Economist Mamunur Rashid to The New Nation.
The commercial banks had recently cut their interest rates on lending but they failed to attract the businesspeople to take loans. The situation indicates that the country’s existing business environment is unfriendly for expanding business, he said.
The central bank has set a ceiling for the private-sector credit growth at 14.30 per cent for the first half of the current fiscal 2015-16 (July-December), as per the latest monetary policy statement (MPS).
Credit expansion to the private sector declined due to lower trade financing by the commercial banks. The private sector credit growth stood at 13.22 per cent in October.
Credit flow in the private sector was Tk 5,94,677.40 crore in October 2015 compared with Tk 5,25,233.30 crore during the corresponding period of the last fiscal.
Actually, the business people suffer in doing business because of inadequate gas and electricity connection. Political unrest and uncertainty are another reason of short of target.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
Large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
They said that the large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
“Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth,” said Economist Mamunur Rashid to The New Nation.
The commercial banks had recently cut their interest rates on lending but they failed to attract the businesspeople to take loans. The situation indicates that the country’s existing business environment is unfriendly for expanding business, he said.
