Prime Minister Sheikh Hasina has once again called banks to bring down the interest rate to single-digit and urged businesses to pay off loans on time.
“We have given some facilities to bank owners as per their desire to lower the interest rate to single-digit. But, only some banks, not all, have slashed the interest rate to nine percent,” she said on Sunday (Mar 31).
Her call came while addressing the inauguration ceremony of the first National Industrial Fair at the Bangabandhu International Conference Centre (BICC) in Dhaka, reports BSS.
The government earlier kept 70 percent of its funds in state-owned banks, which has been now brough to down to 50 percent allowing more funds to private banks, the prime minister told the audience.
Although the bank owners aren’t bringing down the interest rate, they are doing businesses with setting up industries, according to Hasina. “The government may look into whether the bank owners are paying VAT, taxes and purchasing raw materials in a proper manner.”
Describing the loan as the main barrier to industrialisation, she said, “The interest rate on bank loans was once single-digit. But, it has now reached 14, 15 or 16 percent.”
Hasina blamed IMF (International Monetary Fund) for taking the bank loan interest rate to such a high level, as the government was compelled to withdraw cap system (limit on how high an interest rate can rise on variable rate debt) following its advice.
The Industries Ministry organised the week-long ‘National Industrial Fair-2019’ at BICC in the city. The event will end on April 6.
Industries Minister Nurul Majid Mahmud Humayun, MP, presided over the function while Industries Secretary Md. Abdul Halim gave the welcome address.
PM’s Private Industry and Investment Adviser Salman Fazlur Rahman, State Minister for Industries Kamal Ahmed Majumder and President of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Shafiul Islam Mohiuddin spoke on the occasion.