HC moved against Bangladesh Bank circular on loan interest

Bangla Tribune Report
Published : 16:22, Mar 01, 2020 | Updated : 16:23, Mar 01, 2020

Bangladesh BankA writ petition has been filed with the High Court challenging the validity of a circular by Bangladesh Bank (BB), which set the interest rate on bank loans at 9%.
The writ was filed by Barrister Syed Sayedul Haque Sumon on Sunday (Mar 1), on behalf of an apprentice lawyer.
The bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir fixed Monday for the hearing.
On February 24, the Bangladesh Bank asked scheduled banks to charge highest 9% interest for all types of lending, barring credit cards, to help expand business and economy.
The dictated lending regime would be effective from April 1, said a BB circular.
Senior bankers and economists are critical of the BB decision, saying the dictated 9% loan will squeeze the loan growth in the economy.