Economic Reporter :
The present trend of the investment in both public and private sectors should be increased in order to attain the middle-income country by 2021, said Bangladesh Bank (BB) Governor Dr. Atiur Rahman on Thursday.
At present an investment crisis is prevailing in the county, said the governor while addressing an agreement signing ceremony in the conference room of the central bank in the city.
He underscored the need for increasing the investment flow in the productive sector and called upon the financial institutions to increase investment flow in the private sector for achieving a sustainable economy.
Currently, the investment is 29 per cent in the GDP. The investment flow should be 38 per cent of the GDP to become a middle-income country.
Businessmen always claim that high lending rate is hindering the growth of industrial sector as well as increasing the business cost, said the governor.
Considering the necessity of easy loan access, the central bank has created a fund titled “Financial Sector Support Programme” for $300 million, said the governor. Under this programme, the stakeholders will avail the bank loan at 6 to 7 per cent, which would help them to expand their business.
The Governor highlighted how this long-term financing facility towards the manufacturing sector would enable them to remain competitive and enhance the likelihood of capturing the emerging business opportunities in the country and thus contribute to the job creation and economic growth of the economy in turn.
He also expressed his views that upon successful implementation of this project, the financial market infrastructure would be strengthened, which would help in bringing about stability and greater resilience to the financial sector of Bangladesh.
The central bank signed the agreement with four private commercial banks to disburse the fund into the business community. The banks are Mutual Trust Bank, ONE Bank, Al-Arafah Islami Bank and Prime Bank. The chief executive officers of the banks and Bangladesh Bank Executive Director Ahsan Ullah signed the agreement on behalf of their respective organizations.
Deputy Governors SK Sur Chowdhury and Nazneen Sultana were present at the agreement signing ceremony.
Actually, Bangladesh Bank is implementing the Financial Sector Support Project (FSSP) with the financial assistance of the International Development Association of World Bank. Implementation period of the project started from July 1, 2015. Under the “Supporting Long-term Financing Facility” component of the project, Bangladesh Bank would provide Long-term Financing Facility in foreign currency to the manufacturing entities through Participating Financial Institutions.
The size of the fund is around $ 300 million out of which 87 per cent would be borne by the World Bank and the rest would be provided by BB from its own fund. The Foreign Exchange Policy Department of Bangladesh Bank issued a circular in this connection on October 27, 2015 where interested banks were asked to apply to the Project Director (FSSP) for participating in this financing facility.
The present trend of the investment in both public and private sectors should be increased in order to attain the middle-income country by 2021, said Bangladesh Bank (BB) Governor Dr. Atiur Rahman on Thursday.
At present an investment crisis is prevailing in the county, said the governor while addressing an agreement signing ceremony in the conference room of the central bank in the city.
He underscored the need for increasing the investment flow in the productive sector and called upon the financial institutions to increase investment flow in the private sector for achieving a sustainable economy.
Currently, the investment is 29 per cent in the GDP. The investment flow should be 38 per cent of the GDP to become a middle-income country.
Businessmen always claim that high lending rate is hindering the growth of industrial sector as well as increasing the business cost, said the governor.
Considering the necessity of easy loan access, the central bank has created a fund titled “Financial Sector Support Programme” for $300 million, said the governor. Under this programme, the stakeholders will avail the bank loan at 6 to 7 per cent, which would help them to expand their business.
The Governor highlighted how this long-term financing facility towards the manufacturing sector would enable them to remain competitive and enhance the likelihood of capturing the emerging business opportunities in the country and thus contribute to the job creation and economic growth of the economy in turn.
He also expressed his views that upon successful implementation of this project, the financial market infrastructure would be strengthened, which would help in bringing about stability and greater resilience to the financial sector of Bangladesh.
The central bank signed the agreement with four private commercial banks to disburse the fund into the business community. The banks are Mutual Trust Bank, ONE Bank, Al-Arafah Islami Bank and Prime Bank. The chief executive officers of the banks and Bangladesh Bank Executive Director Ahsan Ullah signed the agreement on behalf of their respective organizations.
Deputy Governors SK Sur Chowdhury and Nazneen Sultana were present at the agreement signing ceremony.
Actually, Bangladesh Bank is implementing the Financial Sector Support Project (FSSP) with the financial assistance of the International Development Association of World Bank. Implementation period of the project started from July 1, 2015. Under the “Supporting Long-term Financing Facility” component of the project, Bangladesh Bank would provide Long-term Financing Facility in foreign currency to the manufacturing entities through Participating Financial Institutions.
The size of the fund is around $ 300 million out of which 87 per cent would be borne by the World Bank and the rest would be provided by BB from its own fund. The Foreign Exchange Policy Department of Bangladesh Bank issued a circular in this connection on October 27, 2015 where interested banks were asked to apply to the Project Director (FSSP) for participating in this financing facility.
