Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Business leaders have urged the Bangladesh Bank (BB) to take necessary initiatives for a reduction in interest rates of bank loans to single digits.
They highlighted the banking challenges faced by export-oriented industries, urging the formation of a special committee within Bangladesh Bank to address these issues promptly.
They made the observation while meeting with BB Governor Dir Ahsan H Mansur at BB headquarters in the city.
A 14-member delegation, including representatives from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA), met with Bangladesh Bank Governor today.
Deputy governors of Bangladesh Bank, along with other relevant officials, were also present at the meeting.
After the meeting, FBCCI Secretary General Md Alamgir said the current interest rate in Bangladesh is over 14 percent, which is not conducive to business growth.
He explained that in a fully competitive market, small and medium enterprises make a profit of only 10-11 percent, and such high interest rates make it difficult to remain competitive in the global market.
He urged the central bank to gradually reduce the interest rate to single digits, in line with controlling inflation, promoting investment, and maintaining Bangladesh’s competitiveness in the global market.
The Governor assured that the interest rate would indeed be brought down to single digits in the upcoming monetary policy.
Alamgir also discussed the impact of external factors such as the Covid-19 pandemic, the Russia-Ukraine war, floods, and political instability on businesses.
He proposed the extension of a committee formed to restructure the businesses and financial systems of affected loan recipients, noting that the committee’s term had ended in September, and he had requested a six-month extension.
He also proposed the formation of a separate committee to review loans under Tk 50 crore and provide policy assistance.
The governor assured that this would not be a problem and that the process would continue.
Alamgir suggested that the committee should include representatives from FBCCI, BGMEA, and other trade organisations related to exports.
The governor agreed to the proposal and assigned a deputy governor to handle these concerns.
Alamgir expressed confidence that they would now be able to discuss these issues with the designated official for swift resolution.