In the January-March 2024 period, industrial term loan disbursements increased slightly to Tk 22,015 crore from Tk 20,907 crore a year earlier, driven largely by rising dollar rates, which have made imported goods and raw materials more expensive. The surge in the dollar rate to Tk 120 in July 2024, up from Tk 110 in December 2023 and Tk 99 a year prior, led many industries to seek additional financing and refinance existing dollar-denominated loans into local currency.
However, the increase in disbursements is tempered by challenges including a severe liquidity crisis, high non-performing loans, dollar shortages, and inflation, which have constrained overall loan growth. Disbursements dropped by 34.8% from the previous quarter, while lending rates climbed to near 15%, raising borrowing costs. Despite a 10.13% rise in private sector credit growth in July, LC settlements for raw materials fell by 15.9% in FY24.
Source for more details:
