DCCI urges increased credit flow to CMSMEs

The board of directors of the Dhaka Chamber of Commerce & Industry (DCCI), led by its President Ashraf Ahmed, met with Bangladesh Bank Governor Dr Ahsan H Mansur at the Bangladesh Bank headquarters on Tuesday.

During the meeting, DCCI President Ashraf Ahmed expressed concern that rising interest rates could slow down the flow of credit, particularly to CMSME, says a press release.

He noted that while Bangladesh Bank has several schemes for SME financing, these could be accelerated to better support the sector.

Ahmed also requested the facilitation of foreign trade credit processing, foreign loan processing, and an increase in credit flow to banks.

He emphasized the need for the central bank to reduce the pressure of interest rates on loans to CMSMEs and urged that the current policy should not be prolonged, with rates reduced as soon as practicable.

"We also want inflation to be controlled because it not only increases the cost of living for ordinary people but also raises operational costs for businesses," Ahmed said.

He added that reducing non-performing loans in banks could lead to a decrease in lending interest rates and welcomed the central bank's initiatives to stabilize the financial sector.

He stressed the importance of assisting the CMSME sector in managing the pressure of rising interest rates while maintaining credit flow.

Bangladesh Bank Governor Dr Ahsan H Mansur stated that if inflation can be reduced to a tolerable level within the next 6-7 months, it will be possible to lower the policy interest rate and other interest rates.

He also highlighted the importance of increasing deposit collection in the banking sector, aiming for double-digit growth.

The governor emphasized the need to make credit guarantee facilities for SMEs more operational and suggested limiting government borrowing to increase the flow of credit to the private sector.

He noted that improving payment history and credibility would help entrepreneurs secure foreign trade credit.

Additionally, he announced plans to form a banking commission soon, which will develop a roadmap to stabilize the financial sector.

The governor also advised new investors to invest in special economic zones to access comprehensive facilities.

Deputy Governors of Bangladesh Bank Nurun Nahar and Dr Md Habibur Rahman, DCCI Senior Vice President Malik Talha Ismail Bari, Vice President Md Junaed Ibna Ali, and other board members were also present during the meeting.