The private sector’s external debt declined by about $2 billion in the first three months of the year, in a sign of the shrinking appetite for foreign loans in the face of unfavourable terms.
The private sector’s foreign debt decreased by 4.3 per cent, or more than $1 billion, in the second quarter of the current fiscal year following Bangladesh Bank’s strict measures to control imports.
Private companies are spearheading Bangladesh’s growth with their energy and optimism, putting the economy on a path to cross the $1-trillion mark by 2040, according to a top global consulting firm.
Specific policy incentives are needed to stimulate the economy and revive the labour market.
Businesses and bankers often blame political instability for sliding private sector credit growth. But it was calm as the smoothest waters on the political front last year after the polls on December 30, 2018 and yet the slide did not stop.
The government is going to exceed its annual limit for bank borrowing within the first half of this fiscal year due to poor revenue collection, and this could give a credit crunch for the private sector to deal with.
Private sector credit growth continues its forward thrust despite liquidity crisis and rising interest rates as businesses jump into an
Finance Minister AMA Muhith says the government plans to introduce pension scheme for the private sector by the end of its tenure in 2019.