The country’s leading businessmen have recommended reducing the interest rate on bank loans to single digits in the next phase. They said that it is not right to increase the interest rate of loans for the sake of business. At the same time, they have also proposed to provide special facilities for loan renewal to involuntary defaulters.

Traders said they have recommended repayment in 12 years with a one-year grace period, besides allowing loan renewals at 1 per cent down payment for large defaulted loans and 2 per cent for small and medium loans. They have also highlighted the need to keep the supply of dollars normal and prices stable.

These proposals were presented at a meeting of representatives of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) with Bangladesh Bank Governor Dr. Ahsan H. Mansur on Sunday (January 26). The delegation led by FBCCI Administrator Md. Hafizur Rahman and former presidents of the organization and other senior members participated in the discussion meeting.

Governor Dr. Ahsan H. Mansoor said that various reforms have been taken to maintain the stability of the banking sector. Interest rates have been increased to control inflation. However, this rate has started to decrease and there are plans to reduce it further in the future.

Traders also said that in view of the current global economic situation, it is necessary to keep the interest rate stable to maintain the competitiveness of Bangladeshi products and to control inflation. According to them, it is important to reduce interest rates gradually.

They mentioned that in the current situation, many entrepreneurs are losing their ability to repay loans and are defaulting on them. Therefore, it is important to provide special facilities for the renewal of defaulted loans.

In addition to highlighting the need to expand banking facilities for small and medium industries, the traders proposed to provide special support for the SMEs and the agricultural sector. They also requested that the credit limits of the banks be increased so that entrepreneurs can get loans according to their needs, especially when they face adverse conditions due to the appreciation of the dollar.

In the meeting, businessmen spoke about expanding facilities for SMEs and women entrepreneurs and proposed to distribute loans up to 50 lakh taka at 5 percent interest in this sector due to the increase in production costs in the agricultural sector.

It has even been proposed to establish effective helpdesks to support women for banking development and to provide collateral-free credit facilities. Emphasis has been placed on improving the business environment through these recommendations.