Finance Minister AHM Mustafa Kamal has given assurance that business loans will now have single digit interest rate from January of next year. Compared to other countries, the interest rate for business loans is much higher in the country. This acts as a deterrent for many entrepreneurs. Moreover, those who take loans at the high interest rate often cannot repay the loan in time. They become loan defaulters, which negatively affects the economy.
A committee has been formed in this regard, led by the deputy governor of Bangladesh Bank, to ensure that both state-owned and private banks adhere to the rule. We applaud the government for taking such a step, which will no doubt boost the economy as entrepreneurs will be encouraged to invest more.
The introduction of the single digit interest rate is sure to create a level playing field and accelerate economic growth significantly
The Finance Minister said that the initiative has been taken to expand industries for ensuring jobs for the unemployed and to ensure sustainable economic growth. The minister also emphasized the problem of non-performing loans (NPL) which are detrimental to the economy. He hoped that through this initiative NPLs can be reduced.
The introduction of the single digit interest rate is sure to create a level playing field for entrepreneurs and investors of all backgrounds and will accelerate economic growth significantly. It is being predicted that the reduction of interest rate will significantly improve the economic development of the country.
The ready-made garments and manufacturing sectors particularly stand to gain from the single digit interest rate and this will help to restart many factories to manage funds at low cost which have been shut down for incurring losses.
Moreover, lower interest rates will also encourage foreign investment in the country. This will in turn create more jobs for the economy and the current high rates of unemployment will be reduced.
