Bangladesh’s Private Sector Credit Continues To Rise

Dhaka, Bangladesh | March 26, 2010 by D-8 Secretariat

The private sector credit growth rose to 15.42 percent in October from 13.65 per cent in September 2009

The upward trend in the disbursement of private sector credit continued in January 2010, indicating a gradual improvement in the overall business activities, as reported by AHN Media on Monday.

The rise in private sector credit was 19.25 percent in January this year from 19.15 percent in December 2009, according to the central bank statistics.

“The credit flow to private sector increased following rise in financing small and medium enterprises (SME), agriculture and trade sectors,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told AHN in Dhaka.

Credit flowing to the private sector continued to trend up in October last year after a month of declining growth. The private sector credit growth rose to 15.42 percent in October from 13.65 per cent in September 2009, the lowest in nearly last two years.

Officials also said trade financing for the import of food grains particularly wheat and milk powder increased because of prices of the items in the global market.

“The major economics in the world have been recovering from the global financial criers with rising trend of prices of commodities in the international market that would also be pushed in private sector credit flow in the country,” the official added.

Private sector credit growth rose to 16.73 percent in November from 15.42 percent in October 2009, the BB’s data showed.

The credit flow to the private sector rose to US$5.75 billion (BDT 398.01 billion) in January from $5.16 billion (BDT 357.74 billion) in the same period of the previous calendar year.

“We expect that the upward trend of private sector credit flow will continue in the near future if the power and gas supply situation improves,” a senior official of a leading private commercial bank told AHN in the capital, Dhaka.

News Source: AHN http://www.allheadlinenews.com/articles/7018178474#ixzz0j03zzR2m

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