Finance Minister AMA Muhith says he believes private banks will eventually bring down the lending rate to single digit.
The government does not fix the interest rate rather it discusses with the banks and advises them, Muhith told the parliament on Monday.
Citing the banks has set a date, the octogenarian minister said, “We discusses with them (banks) on lending rate and tell them to lend on soft loan.”
“They (bankers) themselves proposed to cut down the rate to single digit and fixed a date for it too,” he said.
The single-digit lending rate, however, is yet to come into full effect, according to the minister.
Citing the banks also placed several demands including borrowing rate, Muhith said, “We don’t fix the borrowing rate.”
“We have already taken several measures in light of the discussion (with banks officials on Jul 2) and asked the state-owned banks to bring down the lending rate as much as possible.
“We are doing as much as we can, we hope the banks will fulfill their promise very soon, Muhit said