DCCI decries central bank's credit contraction move
Fears it would deter industrial, export growth
Unb, Dhaka
Dhaka Chamber of Commerce and Industry (DCCI) decried Bangladesh Bank (BB) initiative to control inflation by way of cutting down credit flow to 3.3 percent as the DCCI leadership feared it would deter private-sector development, especially small and medium enterprises engaged in export business.In a statement Thursday, DCCI President MA Momen noted that recent hike in prices as well as the dollar value already affected production cost. "In such a situation, instead of making available credit facilities at a lower interest rate, further curtailing credit availability to the private sector by the BB will not only hamper growth of industry but also hamper the production of import-substitute and export-oriented industries," he said. Hoping that the central bank will reconsider its decision, as proposed, the DCCI president observed that country's entrepreneurs would further face difficulty and competition both domestically and in the international market due to this decision. In the recent Monetary Policy Statement (MPS), the BB proposed to control inflation by reducing credit flow within June to 3.3 percent, as inflationary pressures on the economy have recently increased.
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