Bank Loans: Govt firm on bringing down interest rates

Finance Minister AHM Mustafa Kamal yesterday told parliament that the government was determined to bring down the interest rates on bank loans to a single digit.

“Twenty one banks have already decided to lower interest rates to a single digit after meeting with Prime Minister Sheikh Hasina in 2018,” Kamal said in response to a call-attention notice raised by main opposition Jatiya Party MP Moshiur Rahman Ranga.

In his call-attention notice, Ranga said although 11 banks are claiming that they have lowered the lending rates to a single digit, businessmen were claiming that in reality they were still paying 11 to 13 percent interest on their bank loans.

The finance minister further responded by saying he had already started discussions with owners and managing committees of different public and private banks about lowering the rates.

“During the discussions, everyone expressed their positive attitude to lower the bank loan interest rate to single digit. I hope we will be able to find solutions that suit all parties within a short time,” Kamal added.

In his speech, the minister said high rates in bank loans and loan default culture has been creating a negative impact for long on the country's economy.

“I want to assure you in parliament that we will find solutions to those issues.”

Kamal also assured the MPs that the loan default “culture” would not exist in the country in the future and that the amount of defaulted loan would not increase.