{"id":24197,"date":"2021-02-28T06:49:47","date_gmt":"2021-02-28T06:49:47","guid":{"rendered":"http:\/\/www.banglanewsus.com\/english\/?p=24197"},"modified":"2021-02-28T06:56:40","modified_gmt":"2021-02-28T06:56:40","slug":"the-demand-for-loans-in-the-private-sector-is-not-increasing","status":"publish","type":"post","link":"https:\/\/www.banglanewsus.com\/english\/2021\/02\/28\/the-demand-for-loans-in-the-private-sector-is-not-increasing\/","title":{"rendered":"The demand for loans in the private sector is not increasing"},"content":{"rendered":"

News Desk:<\/strong> The demand for loans in the private sector is not increasing yet. The pace of industrial production has not fully returned. That is why the growth of private debt has decreased by 9.96 percent in December compared to the same period in 2019. The negative impact of declining credit demand is likely to be felt in the rural economy and development sector. However, credit growth has increased in the agricultural sector.<\/p>\n

The latest report from the central bank. It said remittances, foreign exchange reserves, money supply in the market and inflation are under control. However, the challenge is to collect revenue. This is because the rate of revenue collection has fallen short of the target at this time. The central bank has prepared a report on the overall economic situation for the six months of July-December of the current financial year (2020-21). Recently it was sent to the Ministry of Finance. Analyzing economic indicators in the report, it is seen that the economy has started to recover after the corona shock. That is why there is a positive trend in various indicators of the economy.<\/p>\n

MK Muzeri, former DG of BIDS and former chief economist of the central bank, said that the central bank’s report indicates that the economy is turning around. There was stagnation in the overall economy during the Corona. But now, if the flow of credit to the private sector can be properly ensured, the pace of activities will increase further. He said that although the flow of credit in the agricultural sector has increased, it has not increased in the non-agricultural sector i.e. private sector. Therefore, special attention should be paid to the SME sector. Because if the growth of credit in the private sector increases, the rural economy will be strengthened and the pace of rapid development will increase. Ordinary people’s income will also increase.<\/p>\n

According to the report, from July to September, term loans of Tk 15,456 crore were disbursed to the industrial sector. This is 29.75 percent less than the same period last fiscal year. Besides, 11,322 crore rupees has been recovered during this period. The collection situation is 45.53 percent less than this period of the last financial year. Overall, the tendency to borrow in the private sector was lower in December. According to the concerned, the reduction in the flow of credit to the private sector means that the investment has decreased during this period. Besides, factories were not fully operational.<\/p>\n

According to the report on the production situation in the industrial sector, the index of production in medium and large scale industrial establishments rose to 440.21 points in July-August of the current financial year. At this time in 2019, the index of production in this sector was 411.60 points. According to entrepreneurs, the country’s economy is slowly returning to normal after the withdrawal of the general holiday. Even many organizations in the informal sector have started activities. But these institutions are not working at full capacity yet. In addition, many other sectors have not yet returned to full capacity.<\/p>\n

Inflation is under control, the central bank said in a report, adding that the rate of inflation has come down to 5.29 per cent from 5.69 per cent on a point-to-point basis in December. Only the December-to-December month-on-month inflation rate has also come down. However, there are fears that inflation may rise slightly in February due to rising prices of essential commodities. The central bank’s report also said that imports fell by 211.5 million during the July-November period. In other words, compared to the same period of 2020, the import has decreased by 8.81 percent.<\/p>\n

The report further said that the supply of money in the market has increased during this period. Lastly, money supply increased by 14.23 percent last year.<\/p>\n

Meanwhile, the concerned people think that the government is working to implement the incentive package to turn the economy around by pushing the Covid-19. Because the government is spending 1 lakh 24 thousand 53 crore in 23 packages to revive the economy. While on the verge of turning around, the economy faces a number of challenges. This is the slowdown in revenue growth. In the six months till December of the current financial year, a total revenue of Tk. 1 lakh 10 thousand 434 crore has been collected. This is an increase of Tk 4,347 crore over the same period of the last financial year, which is an increase of about 4.10 per cent over the same period of the last financial year. However, the target for revenue collection at this time was 1 lakh 41 thousand 220 crore. As a result, revenue collection of Tk 30,006 crore is lagging behind. According to the concerned, the coronavirus epidemic did not start in the country till December last fiscal year. Normal business activities continued then. But the current financial year has started with the epidemic. Even then, we are seeing a positive growth of 4.10 percent in revenue collection in the first six months as compared to the previous financial year. Besides, achieving the targets is being seen as a challenge.<\/p>\n

Remittances are flowing into the economy. In the first six months of the financial year, remittances from expatriates came to about 345 crore US dollars. This is 37.59 percent more than the same period of the last financial year. At the same time, foreign aid came to \u09ea 204 million. This is 24.66 percent more than the same period last fiscal.<\/p>\n","protected":false},"excerpt":{"rendered":"

News Desk: The demand for loans in the private sector is not increasing yet. The pace of industrial production has not fully returned. That is why the growth of private debt has decreased by 9.96 percent in December compared to the same period in 2019. The negative impact of declining credit demand is likely to be felt in the rural economy and development sector. However, credit growth has increased in the agricultural sector. The latest report from the central bank. It said remittances, foreign exchange reserves, money supply in the<\/p>\n","protected":false},"author":6,"featured_media":24198,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24197"}],"collection":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/comments?post=24197"}],"version-history":[{"count":2,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24197\/revisions"}],"predecessor-version":[{"id":24203,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/posts\/24197\/revisions\/24203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/media\/24198"}],"wp:attachment":[{"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/media?parent=24197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/categories?post=24197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.banglanewsus.com\/english\/wp-json\/wp\/v2\/tags?post=24197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}