Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has imposed restrictions on consumer-financing including car loans through introduction of loan margin for these financing facilities, officials said.

Under the new guidelines, the commercial banks will have to maintain loan-margin ratio at 50:50 for any type of consumer-financing, the central bank officials added.

“We’ve taken the latest measures to discourage loans to unproductive sectors for curbing inflationary pressures on the economy,” a senior official of the Bangladesh Bank (BB) said.

The central bank has taken the move against the backdrop of rising trend in disbursement of credit to the private sector in the recent months.

Credit flow into the private sector recorded a growth of 26.65 per cent to Tk 604.374 billion in September 2010 on a year-on-year basis, compared to 13.65 per cent or Tk 272.491 billion in the same period of the previous calendar year, according to the central bank statistics.

“Higher private sector credit growth has partially led the country’s inflationary pressure due to gestational gap,” another BB official said, adding that the central bank as well as the government have taken different measures to curb inflation.

BBN/SI/AD-30 Dec10-2:04 pm (BST)