Industrial credit flow picks up in first half
Wednesday, 12 March 2008
FE Report
Industrial credit flow recorded a significant rise by more than 64 per cent during the first half of the current fiscal against that of the corresponding period of the previous fiscal, officials said.
A central bank high official attributed the higher disbursement of term loans to the gradual improvement of confidence level of the business people, who seemed to be panicked due to the government's anti-corruption drives.
'The confidence of businessmen is gradually improving leading to a rise in disbursement of industrial term loans,' a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the upward trend will continue in the coming months to meet the growing demand from the country's businessmen.
The disbursement of industrial term loans stood at Tk 96.63 billion (9,663 crore) during the July-December period of the fiscal 2007-08 (FY08). A total of Tk 58.64 billion was disbursed during the same period of last fiscal, according to the central bank statistics.
Another central bank official said import of capital machinery would increase in the near future following the higher disbursement of industrial term loans.
'Capital machinery import already increased in the six months of the current fiscal and we are hopeful the import will go up further by the end of the third quarter,' the BB official noted.
He also said the central bank has already recommended strengthening efforts to boost import of capital machinery and help infuse dynamism into business activities.
The import of capital machinery fell by 3.06 per cent during July-January period of the current fiscal over that of the corresponding period of the previous fiscal.
The capital machinery import declined to $822.42 million in the period from $848.39 million of the corresponding period of the previous fiscal, the BB's data showed.
However, commercial bank officials are expecting that the uptrend in disbursement of industrial term loans will continue in different sectors including power and telecommunications.
'We see the demand for term loans in various productive sectors, particularly in power sector, will continue in next three to four years,' a senior official of a commercial bank told the FE.
The recovery of term loans increased by over 43 per cent during the July-December period as the banks and non-banking financial institutions (NBFIs) intensified their recovery drive in line with the central bank directives, they added.
During the same period, the industrial credit recovery was Tk 59.36 billion compared to Tk 41.34 billion of the corresponding period of the previous fiscal, the data showed.
Industrial credit flow recorded a significant rise by more than 64 per cent during the first half of the current fiscal against that of the corresponding period of the previous fiscal, officials said.
A central bank high official attributed the higher disbursement of term loans to the gradual improvement of confidence level of the business people, who seemed to be panicked due to the government's anti-corruption drives.
'The confidence of businessmen is gradually improving leading to a rise in disbursement of industrial term loans,' a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the upward trend will continue in the coming months to meet the growing demand from the country's businessmen.
The disbursement of industrial term loans stood at Tk 96.63 billion (9,663 crore) during the July-December period of the fiscal 2007-08 (FY08). A total of Tk 58.64 billion was disbursed during the same period of last fiscal, according to the central bank statistics.
Another central bank official said import of capital machinery would increase in the near future following the higher disbursement of industrial term loans.
'Capital machinery import already increased in the six months of the current fiscal and we are hopeful the import will go up further by the end of the third quarter,' the BB official noted.
He also said the central bank has already recommended strengthening efforts to boost import of capital machinery and help infuse dynamism into business activities.
The import of capital machinery fell by 3.06 per cent during July-January period of the current fiscal over that of the corresponding period of the previous fiscal.
The capital machinery import declined to $822.42 million in the period from $848.39 million of the corresponding period of the previous fiscal, the BB's data showed.
However, commercial bank officials are expecting that the uptrend in disbursement of industrial term loans will continue in different sectors including power and telecommunications.
'We see the demand for term loans in various productive sectors, particularly in power sector, will continue in next three to four years,' a senior official of a commercial bank told the FE.
The recovery of term loans increased by over 43 per cent during the July-December period as the banks and non-banking financial institutions (NBFIs) intensified their recovery drive in line with the central bank directives, they added.
During the same period, the industrial credit recovery was Tk 59.36 billion compared to Tk 41.34 billion of the corresponding period of the previous fiscal, the data showed.