Business leaders have urged Bangladesh Bank to bring down lending rates to single digits, describing the current high-interest environment as detrimental to business growth and competitiveness.
They made the call during a meeting with Bangladesh Bank governor Ahsan H Mansur on Thursday, where representatives from the Federation of Bangladesh Chambers of Commerce and Industry, the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association, and the Bangladesh Textile Mills Association participated as part of a 14-member delegation.
Deputy governors and senior officials from the central bank also attended the meeting.
After the discussion, FBCCI secretary general Md Alamgir Hossain told journalists that the current lending rate, which stands above 14 per cent, is not business-friendly.
He explained that in a fully competitive market, small and medium enterprises typically earn profits of only 10 to 11 per cent, meaning that the prevailing interest rate structure leaves them with no room to sustain operations, let alone expand.
At this rate, it is extremely difficult for local businesses to remain competitive in the global market, he said.
Alamgir added that the delegation requested the central bank to gradually reduce the lending rate to a single-digit level in the next monetary policy.
He said a lower interest rate is necessary not only to support investment and protect competitiveness but also to control inflation and stimulate economic growth.
The governor assured the businesses that the policy interest rate would be reflected at a single-digit level in the upcoming monetary policy, Alamgir noted.
He also raised concerns about borrowers and businesses affected by Covid-19, the Russia-Ukraine war, floods, and political instability, saying these factors have significantly disrupted operations and financial systems.
Alamgir requested an extension of six months for the committee that was formed to restructure the businesses of affected borrowers, whose tenure expired in September.
The delegation further proposed forming a separate committee to review and support loans under Tk 50 crore, ensuring that smaller enterprises receive timely policy assistance.
In addition, business leaders demanded the creation of a special high-level committee at Bangladesh Bank to resolve the banking issues faced by export-oriented industries.
They said exporters often face sudden banking complications that require quick policy decisions.
Alamgir proposed that the committee include representatives from FBCCI, BGMEA, and other trade bodies connected to exports.
The governor approved the idea and assigned a deputy governor to oversee these matters, Alamgir said.
鈥楩rom now on, we will be able to engage directly with the designated deputy governor to address the issues of exporters and other businesses more swiftly and effectively,鈥� he said.
