Private sector lending rate of the country has begun rising to recover from a decade-low growth after investments plunged amid the coronavirus pandemic at the end of 2019-20 fiscal year. The credit flow growth to the private sector had dropped to the lowest level - 8.61 per cent - in June, the last month of the previous fiscal year. In the 2017-18 fiscal year, the registered credit flow grew by 16.94 per cent and in the following financial year it saw a 11.32 per cent growth. Although the target credit flow rate in the private sector is lower than that of the government sector, the projected loan amount of the private sector is much higher than the government. The growth of credit flow has been dropping since then despite central bank moves to keep the growth on an upbeat note.

Source: bd News24 August 30, 2020 16:30 UTC