A committee will be formed to bring down the lending interest rates to single digit and reduce non-performing loans (NPLs), says Finance Minister AHM Mustafa Kamal.
“The committee has been asked to inform their decisions over the issues in seven days. The process of interest rate reduction will commence from Jan 1 next year,” the minister told during a media call on Sunday (Dec 1).
Prior to the media call, he has discussed present banking crisis in a meeting with the chairmen and managing directors of government and private banks at the capital’s National Economic Council (NEC) auditorium of Sher-e-Bangla Nagar.
“The decision of dropping lending rates has been taken for the survival of production sector,” the minister said.
“The committee will find out the reasons behind the delay of the interest reduction process and the bump of default loan amount,” he added.
“The amount of NPLs will decrease by the end of December,” he assured before confessing that rescheduling policies adopted recently has default loans in past several months.