Dhaka, Bangladesh (BBN)- Disbursement of industrial term loan declined by 3.64 pc in the first nine months of the current fiscal year (FY) due mainly to the prevailing political uncertainty and inadequate supply of power and natural gas.

The disbursement of industrial term loan came down to BDT 308.49 billion in the July-March period of the FY 14 from BDT 320.15 billion in the corresponding period of the previous fiscal, according to the central bank statitices.

“Disbursement of industrial term loan fell slightly during the period under review as entrepreneurs are still maintaining a ‘go-slow’ policy to avoid financial risks,” Masum Patwary, general manager of the SME and Special Programmes Department of the Bangladesh Bank (BB) explained.

He also expected that the industrial term loan disbursement will increase in the coming months as the political situation has been  improving gradually.

 “The demand for industrial term loan is still low as most of businessmen are following a wait-and-see policy to avoid financial risks,” a senior official of a leading private commercial bank told BBN in Dhaka.

He also said the businesses are yet to be confident enough about the political stability in Bangladesh for making their investment.  “But the disbursement of industrial term loan may increase in the near future if the government announces a business-friendly budget next month.”

BBN/SSR/AD-19May14-11:48 am (BST)