New Loans to Private Sector to Increase by Tk 1,750 Crore
Collected Photo
To boost investment, industrial production, and employment, loans to the private sector are being increased in the upcoming budget. Credit to the private sector had been low due to a prolonged tight monetary policy aimed at controlling inflation.
To overcome the slowdown that has occurred in business and commerce as a result, the government is moving towards an expansionary policy. Consequently, the loan target for the private sector for the next fiscal year has been set at Tk 20,625 crore. This is Tk 1,750 crore higher than the current fiscal year.
In the proposed budget for the 2026-27 fiscal year, broad money (M2) growth has been set at a revised 11.5 percent for the current fiscal year. The target for the next fiscal year (2026-27) has been increased to 12.8 percent.
Similarly, targets have been set to increase Net Domestic Assets growth from 9.7 percent to 12.6 percent, and private sector credit flow from 8 percent to 9.4 percent.
