Abu Sazzad :
The disbursement of industrial term loans by banks and non-banking financial institutions dropped by 28.39 per cent in the third quarter (January to March) of the outgoing fiscal year (FY) 2014-15 compared with the second quarter (October to December) mainly due to political unrest in the first three months of the current year across the country.
The disbursement of industrial term loans came down to Tk 13,350.62 crore in the third quarter of FY 15 while it was Tk 18,644.13 crore in the second quarter, according to the central bank’s latest data.
Executive Director of Bangladesh Bank M Mahfuzur Rahman said that
the central bank permitted local enterprises to avail low-cost foreign loans for the past three years. As the foreign loans are more profitable, the business communities do not apply for industrial loans.
Economist Mamun-Ur-Rashid said that the disbursement of industrial loans was seriously hampered because of political unrest that had also affected supply chain across the country.
“More industrial loan is must for the rapid growth of the industrialisation for the sustainable economic development of the country”, said the economist. He hoped that the rising trend of industrial term credit disbursement would continue in the coming months if political stability continued.
On the other hand, the recovery of overall industrial loans also fell by 11.76 per cent to Tk 10,520.96 crore in the quarter three. Beside it was Tk 11,923.57 crore in the quarter two, as per BB data. Md Helal Uddin, former Vice-President of the Bangladesh Chamber of Commerce and Industry (FBCCI) said that a good number of businessmen failed to pay their equal monthly installments due to the political disturbance in the beginning of the year.
For this, business expansion was almost halted in the quarter three. He also said most of the businessmen had maintained a ‘go-slow’ policy during the period for minimising their risks.
The FBCCI leader urged the government to ensure adequate supply of gas and electricity for expanding their business. He explained that the upward trend of industrial loans disbursement would continue subject to the better supply of gas and electricity to industrial units.
Many entrepreneurs deliberately are not taking fresh loan due to power-energy crisis and high lending rates. As a result, the demand for credit has been declining day by day, Helal Uddin explained.
Md Saiful Islam, Manager of Pubali Bank, Islamic Banking Branch said, the disbursement of term loans would improve in the last quarter because the entrepreneurs are coming back to bank for loans.
The disbursement of industrial term loans by banks and non-banking financial institutions dropped by 28.39 per cent in the third quarter (January to March) of the outgoing fiscal year (FY) 2014-15 compared with the second quarter (October to December) mainly due to political unrest in the first three months of the current year across the country.
The disbursement of industrial term loans came down to Tk 13,350.62 crore in the third quarter of FY 15 while it was Tk 18,644.13 crore in the second quarter, according to the central bank’s latest data.
Executive Director of Bangladesh Bank M Mahfuzur Rahman said that
the central bank permitted local enterprises to avail low-cost foreign loans for the past three years. As the foreign loans are more profitable, the business communities do not apply for industrial loans.
Economist Mamun-Ur-Rashid said that the disbursement of industrial loans was seriously hampered because of political unrest that had also affected supply chain across the country.
“More industrial loan is must for the rapid growth of the industrialisation for the sustainable economic development of the country”, said the economist. He hoped that the rising trend of industrial term credit disbursement would continue in the coming months if political stability continued.
On the other hand, the recovery of overall industrial loans also fell by 11.76 per cent to Tk 10,520.96 crore in the quarter three. Beside it was Tk 11,923.57 crore in the quarter two, as per BB data. Md Helal Uddin, former Vice-President of the Bangladesh Chamber of Commerce and Industry (FBCCI) said that a good number of businessmen failed to pay their equal monthly installments due to the political disturbance in the beginning of the year.
For this, business expansion was almost halted in the quarter three. He also said most of the businessmen had maintained a ‘go-slow’ policy during the period for minimising their risks.
The FBCCI leader urged the government to ensure adequate supply of gas and electricity for expanding their business. He explained that the upward trend of industrial loans disbursement would continue subject to the better supply of gas and electricity to industrial units.
Many entrepreneurs deliberately are not taking fresh loan due to power-energy crisis and high lending rates. As a result, the demand for credit has been declining day by day, Helal Uddin explained.
Md Saiful Islam, Manager of Pubali Bank, Islamic Banking Branch said, the disbursement of term loans would improve in the last quarter because the entrepreneurs are coming back to bank for loans.
