Dhaka, Bangladesh (BBN)- The disbursement of industrial term loans dropped by 28.39 per cent in the third quarters (Q3) of the outgoing fiscal year (FY) 2014-15 over that of the previous quarter mainly due to political unrest, officials said.
The disbursement of industrial term loans came down to BDT 133.51 billion in the Q3 of FY 15 from BDT 186.44 billion in the previous quarter, according to the central bank latest statistics.
“Industrial loans disbursement hampered seriously during the period under review because of political turmoil,” a senior official of the Bangladesh Bank (BB) explained.
He also said the disbursement of industrial term credit witnessed a rising trend from beginning of the final quarter of the FY 15 following improvement of the country’s overall political situation. “We expect that the rising trend of industrial term credit disbursement will continue in the coming months if the political stability continues.”
The estimate includes disbursement of fresh credit, rescheduling of term loans and fund release for balancing, modernisation, rehabilitation and expansion (BMRE) of industrial units.
The recovery of overall industrial loans also fell by 11.76 per cent to BDT 105.21 billion in the Q3 of the FY 15 from BDT 119.23 billion three months ago, the BB data showed.
“Such upward trend of the industrial loans disbursement will continue if the government ensures better supply of gas and electricity to the industrial units,” a senior official of a leading private commercial bank told BBN.
He also said the government is now trying to generate more power through establishing new plants to meet the growing for electricity across the country.
BBN/SSR/AD