Economic Reporter :
Private sector credit growth in the country increased less than one percent in January from that of the previous month mainly due to the jump of import payments, said officials of Bangladesh Bank (BB).
According to the latest BB data, the year-on-year credit growth rate in the private sector rose to 15.61 per cent in January compared with that of 15.55 per cent in December of the ongoing financial year (2016-17).
The year-on-year private sector credit growth had increased also in December as the growth was at 15.01 per cent in November of 2016.
Credit flow to the private sector stood at Tk 7,19,352.80 crore in January, 2017 against Tk 6,71,009.40 crore in the same month of 2016. The figure was Tk 7,17,019.50 crore in December, 2016 against Tk 6,20,506.90 crore in the same month of 2015.
A BB official told New Nation on Monday that the credit growth in the private sector increased in January as the import financing jumped significantly year-on-year.
He said that the settlement of LCs, or actual import payments, increased in January of FY17 as petroleum products, most of the food products and capital machinery rose on the global market in the month.
The private sector credit growth stood at 15.20 per cent in October, 15.34 per cent in September, 16.21 per cent in August and 15.97 per cent in July of 2016.
The BB data showed that the import payments registered a 34.54-per cent growth in January this year against the 5.04-per cent negative growth in the corresponding month of 2016.
The BB data showed that letters of credit involving $3.88 billion were settled in January this year against $2.88 billion settled in the same month of 2016. The import of petroleum products increased by 150.76 per cent to $218.04 million in January this fiscal year from $86.95 million in the same month a fiscal year ago as the country’s industrial units depended on the products due to the persistent crisis of natural gas.
The global prices of the petroleum products recently increased, which played a role in raising the payments for the imported items, the official said. Demand for power to run irrigation pumps has also fuelled the use of the petroleum products, he said.
Import payments for sugar and milk food in January of 2017 increased to $153.35 million and $18.37 million respectively from $58.01 million and $15.08 million in the same month of 2016.
The prices of sugar and milk food have recently increased at the global market, which put an impact on the import cost of the products, the central banker said.
Settlement of LCs for capital machinery amounted to $264.34 million in January of 2017 against $189 million in the same month of 2016.
The BB official said that the import of capital machinery jumped in recent times, prompting suspicion that money laundering might have occurred in the process.
Private sector credit growth in the country increased less than one percent in January from that of the previous month mainly due to the jump of import payments, said officials of Bangladesh Bank (BB).
According to the latest BB data, the year-on-year credit growth rate in the private sector rose to 15.61 per cent in January compared with that of 15.55 per cent in December of the ongoing financial year (2016-17).
The year-on-year private sector credit growth had increased also in December as the growth was at 15.01 per cent in November of 2016.
Credit flow to the private sector stood at Tk 7,19,352.80 crore in January, 2017 against Tk 6,71,009.40 crore in the same month of 2016. The figure was Tk 7,17,019.50 crore in December, 2016 against Tk 6,20,506.90 crore in the same month of 2015.
A BB official told New Nation on Monday that the credit growth in the private sector increased in January as the import financing jumped significantly year-on-year.
He said that the settlement of LCs, or actual import payments, increased in January of FY17 as petroleum products, most of the food products and capital machinery rose on the global market in the month.
The private sector credit growth stood at 15.20 per cent in October, 15.34 per cent in September, 16.21 per cent in August and 15.97 per cent in July of 2016.
The BB data showed that the import payments registered a 34.54-per cent growth in January this year against the 5.04-per cent negative growth in the corresponding month of 2016.
The BB data showed that letters of credit involving $3.88 billion were settled in January this year against $2.88 billion settled in the same month of 2016. The import of petroleum products increased by 150.76 per cent to $218.04 million in January this fiscal year from $86.95 million in the same month a fiscal year ago as the country’s industrial units depended on the products due to the persistent crisis of natural gas.
The global prices of the petroleum products recently increased, which played a role in raising the payments for the imported items, the official said. Demand for power to run irrigation pumps has also fuelled the use of the petroleum products, he said.
Import payments for sugar and milk food in January of 2017 increased to $153.35 million and $18.37 million respectively from $58.01 million and $15.08 million in the same month of 2016.
The prices of sugar and milk food have recently increased at the global market, which put an impact on the import cost of the products, the central banker said.
Settlement of LCs for capital machinery amounted to $264.34 million in January of 2017 against $189 million in the same month of 2016.
The BB official said that the import of capital machinery jumped in recent times, prompting suspicion that money laundering might have occurred in the process.
