Bangladesh Bank Governor Fazle Kabir has said it is possible to bring down the lending rate to single digit from Apr 1.
"The economy of Bangladesh mostly depends on the banking sector which is why the government has moved to cut the lending rate to improve the businesses climate," he said on Tuesday (Jan 14).
Speaking at an event of the Dhaka Chamber of Commerce and Industry (DCCI) in the capital, the governor urged the authorities concerned so that entrepreneurs can receive the utility services and banks loans on time to avoid a collapse.
"Banks must be more careful to identify the loan defaulters," he insisted.
Kabir said the government has already taken mega projects and the businesses should come up with investment to make Bangladesh a developed nation by 2041.
Referring to the withdrawal of the stamp duty by the government, the central bank chief said the initiative would help the bond market to expand.
"Launching of a secondary bond market is imperative," Kabir said.
DCCI President Shams Mahmud said high lending rate hinders expected growth in private sector investment despite Bangladesh achieved 8 percent growth in GDP.
Mahmud urged the central bank to ensure the single-digit lending rate to offset a stagnant investment in private sector.