The country’s businessmen will get bank loans at a single digit interest rate from January next, Finance Minister AHM Mustafa Kamal said on Sunday. He made the assurance after a views-exchange meeting with chairmen and managing directors of state run and private banks at NEC conference room.
“At present, interest rate for business loan is very high than other countries across the globe. As the country’s entrepreneurs take loan from banks at high interest rates, they can’t repay the loan in due time. And at one stage, they become loan defaulters. So, all state and private banks have been asked to give loan at a single digit interest rate to promote our business,” AHM Mustafa Kamal said.
“In this regard, a seven-member committee, led by the deputy governor of Bangladesh Bank, with members from state-owned and private banks has been formed to find a way to reduce the interest rate to a single digit,” Kamal added. He also said the central bank governor Fazle Kabir formed the committee on Sunday, and it has been asked to submit a report within the next seven days on how to implement the single-digit interest rate.
AHM Mustafa Kamal mentioned bank owners have assured the Prime Minister of bringing down the interest rate to single digit in August last year. “Based on their commitment to the prime minister, they also have been given various facilities to run their financial institutions,” the minister said, adding but it is very unfortunate that the owners of bank and other financial institutions did not keep their words showing lame excuses.
According to the latest report of the Bangladesh Bank, he informed, only 11 state-own and private banks have kept their words given to the Prime Minister over bringing down interest rate to single digit in the last sixteen months, while 35 banks are still charging interest rate between 12 and 20 percent.
The Finance Minister AHM Mustafa Kamal said the country needs to increase industries for ensuring job for all unemployed to ensure sustainable economic growth. “Our challenges is non-performing loans,” he said adding I assured that NPL will not increase further and it will gradually decrease.
“Although NPL has recently increased, we need to know why. High interest rates is the main reason for this,” he said. “If the interest rate is increased then the NPL also will increase because of businessmen faced various difficulties to return loan with 14-15 percent interest rate, he said adding that, so it is very important to bring the interest rate to a single digit and we are trying to do that. “So if the interest rate is fixed within 9 percent, NPL will not increase.
He expected that after 10 years, we would enjoy the fruit of bringing down the interest rate to single digit. Finance Minister also said, "We want to operate the banks in the betterment of the country. That is why, we must reduce the NPL as well as interest rates to build more industries in the country.”
