Private Correspondent: The distribution of loans to the private sector has also increased in August. Private sector credit growth, which has been steadily declining, rose to 0.59 percent in August from a month earlier.

Debt has increased by 9.36 percent as compared to the same month last year. The growth was mainly due to incentive loans to offset losses caused by the coronavirus, officials said. They expect the growth to increase further in the coming months.

Private sector debt has been slowing for a long time. At the end of the financial year, the epidemic became even worse. This did not achieve the target of private sector credit growth in 2019-20. According to the Bangladesh Bank, loans in this sector increased by only 8.61 percent against the annual target of 14.8 percent in the entire financial year. This is the lowest growth in the last eight years.

Statistics show that credit growth in the private sector has declined almost every month in the last financial year. In the first month of the financial year, in July, the annual growth was 11.28 percent. The following month, in August, it was 10.6 percent, in September it was 10.7 percent, in October it was 10.4 percent, in November it was 9.6 percent.

In December it was 9.63 percent, in January it was 9.20 percent, in February it was 9.13 percent, in March it was 7.6 percent and in April it was 8.62 percent. However, Mete increased slightly to 8.6 percent. In June, it dropped sharply to 8.61 percent. However, the disbursement of incentive package loans is expected to accelerate some of the private sector debt in the current financial year.

According to the Bangladesh Bank, at the end of August this year, the private sector loan status has increased to 11 lakh one thousand 85 crore. In August 2019, which was 10 lakh seven thousand 398 crore. As a result, private sector debt has increased by Tk 94,038 crore or 9.36 percent in the last one year.

The government has announced an incentive package of around Rs 1 lakh crore to cover the damage of coronavirus. Most of this will be disbursed by the banks as loans. Of this, about Tk 21,000 crore has been distributed out of Tk 33,000 crore in the industry and services sector.

Of the Tk 20,000 crore in the CMSME sector, about Tk 3,600 crore has been disbursed. The government has provided Tk 5,000 crore for salaries and allowances in export-oriented organizations.

In addition, a new fund of about Tk 12,620 crore has been added to the Export Development Fund, Tk 5,000 crore for working capital in the agricultural sector, Tk 5,000 crore for pre-shipment credit sector and Tk 3,000 crore for low-income professionals, marginal farmers and small traders. Parts delivered.