Private sector foreign debt is rising

Increasing short-term foreign debt in the private sector. Due to much lower interest rates than domestic banks to finance imports of foreign debt entrepreneurs are turning. At the end of the last financial year increased by less than one year term foreign debt balance stood at $ 390 million. Six months ago, in December of last year was 298 million dollars in the state. 6 month loans rose to $ 9 billion, which is 87 percent to 30 percent.
On the other hand, in the last six years, the private sector and entrepreneurs through the Board of Investment of nearly 6 billion dollars of foreign loans have been approved. Low-interest loans from abroad to declining demand for domestic bank loans
One of the reasons.
According to Bangladesh Bank, private sector credit growth in a few years less. 201415 fiscal year, rose 13 percent to 19 percent of private sector credit growth. 1 percent in the previous year was 7 percent. Low-interest loans from abroad opportunities in export-oriented industries due to reduced debt. Banks are in business to sustain small and medium industries (SMEs) loans increases. However, the SME loan credit fund management cost because profit is not expected. Three or four years ago, the domestic private sector bank credit growth was 0 percent.
Bangladesh Bank Deputy Governor SK Sur Chowdhury Samakal said, in the interest of the development of the industry to foreign currency debt and foreign credit institutions are allowed. Due to lower interest rates than domestic banks entrepreneurs spend less. Domestic banks, SMEs, the agriculture sector, as the sector is now in a time of low interest loans showed increases. It has easy access to credit for those classes. Contributing to the new entrepreneurs.
Private sector foreign debt was increased by 014 in June, the central bank issued a circular to the scheduled repayment of the loan. There are more than 10 million dollars for a period of 6 months after the loan is paid on a quarterly basis.
The use of credit and repayment capacity of the borrower to ensure timely opening of the letter of instruction is given. The direction of short-term foreign debt increased in the next month to pay off the debt kamachila status. Since last December, however, the loan balance is increasing as a result of this case to show some flexibility.
According to the central bank, short-term foreign debt balance stands at 390 billion dollars last June. 6 billion has been paid in the month. The new issue of $ 78 million. 75 million dollars in the previous month, after payment of the state debt was 374 billion dollars. The new issue of $ 75 million. Earlier in March, the state debt was 332 billion dollars. In the new issue of 38 billion dollars and was paid 65 million dollars.
In December, paying 68 million dollars and 58 million dollars in the new issue of the status of the loan stood at $ 298 million. And in June last year after the issuance of new debt balance stood at $ 57 billion to $ 326 billion.
On the other hand, BOI enterprises in the private sector over the past six years, nearly 600 million dollars of foreign loans have been approved. 51 183 million of the 014 million dollars was paid in. In previous years, alternating between 117 million and 3 013 million, 146 million and 67 million in the previous year, 011 million to 90 million, 93 million and 30 million in the previous year to $ 4 million foreign loan was approved. Out of the 50 billion dollars of foreign loans have been approved this year.
Foreign exchange policy, only 6 percent for imports of capital machinery and raw materials used in the industry to have access to low-interest short-term foreign debt. Short-term debt and long-term loans to the central bank to apply for the investment to the Board. In contrast to imports from domestic banks to borrow from the 1 to 14 percent of the interest paid, less interest from abroad, it is 6 percent. The industrial development of such debt is exposed. However, the low interest in the use of other irregularities in the financial information coming out of a visit to the central bank.