BB to issue circular for single digit lending rate: Kamal

DHAKA, Finance Minister AHM Mustafa Kamal today said Bangladesh Bank (BB) will issue a circular soon as the scheduled banks can charge single digit lending rate.

Sixteen banks, including seven stateown banks, have already charged single digit lending rate. All banks will also bring down their interest rate to a single digit. BB will issue a circular soon in this regard, he told journalists after meeting with chairmen and managing directors of the different scheduled banks at the central bank headquarters in the city.

Among others, Prime Minister's Private Industry and Investment Adviser Salman Fazlur Rahman, Senior Secretary of Financial Institutions Division Md Ashadul Islam and Bangladesh Bank Governor Fazle Kabir attended the meeting.

Kamal said the government has a plan to meet quarterly with chairmen and managing directors of the scheduled banks to accelerate the process of reducing the classified loans and operational cost and increasing services of the customers.

We will get the June quarterly figure on September. We have a plan to sit with the chairmen and managing directors of the scheduled banks on October, he added.

Regarding the today's meeting, the finance minister said, the top management of every bank assured him of taking necessary steps for reducing classified loans, interest rate and cost of operation.

At the meeting, we discussed on the overall situation of banks and financial institutions. We also discussed on preparations for implementing the targets in the budget for fiscal 201920, he added.

Kamal said the government is propeople and it is taking steps for welfare of the people.

BB issues different circulars everyday for keeping the financial sector stable. The initiatives for single digit lending rate and reducing the default loans are good,

He warned the dishonest loan defaulters and said the government will take action against the dishonest loan defaulters as per the law.

There are two types of loan recipients and defaulters good and dishonest. We will take action against the bad loan defaulters, he added.

Source: Bangladesh Sangbad Sangstha (BSS)