2024-07-05 20:06:29
Private sector credit growth has increased to 10.35 percent at the end of May of FY 2023-24. Credit growth in the private sector was 9.90 percent in April. Private sector credit growth increased during the period under discussion. This information is known from the sources of Bangladesh Bank.
According to central bank data, credit growth in the private sector was 10.49 percent in March this year, which was the highest in nine months at that time. Credit growth in the private sector was 9.90 percent in April. And in May which stood at 10.35 percent.
The growth rate of private sector credit was 14 percent in the first half of FY 2023-24 but was brought down to 10 percent in the second half. Since then credit growth has been around the target.
Bank officials say the growth picture is due to contractionary monetary policy and higher lending rates. Increasing private sector investment is essential for the development and employment growth of a country. But gradually the private investment of our country is decreasing.
According to the data of Bangladesh Bank, in the first eight months of the current fiscal year (July-February), the amount of LC opening and settlement has decreased by 4.23 percent and 13.93 percent respectively compared to the same period of the previous fiscal year. In the first eight months of the financial year 2022-23, LC settlement was $51.48 billion. In the first eight months of the current financial year, LC settlement was 44.31 billion dollars.
In the first eight months of the current financial year, LC settlement of capital equipment fell by 25.36 percent to $1.85 billion. Besides, the import settlement of industrial raw materials decreased by 25.06 percent to 1.43 billion dollars.