Loan default and high interest rate

The volume of defaulted loans is rising in the banks which is indeed bad news for the economy. Many industries are in deep distress due to high interest rates. There were talks of reducing the interest rates in the government sector, but any concrete step is yet to be taken in this regard.  If the interest rate is reduced, many investors will feel encouraged to make fresh investments and many potential investors will come forward to invest.  If the bank interest rate is cut, everyone will be benefited.

Loan default has swollen and reached in Taka 170000 millions in the first nine months of the current fiscal and it is high time the government intervened and reduced the interest rate to a single digit. Without cutting down interest rate we cannot expect our economy to flourish. If we compare our interest rates with those of neighbouring countries, we shall find that our rates are really high. I hope the Bangladesh bank will review the interest rates and lower the same so that our indusial sector is relieved of its interest load, which is actually slowing down the pace of development and  making the economy sluggish.

Mohammed Sohel Hara

Bana Shree, Dhaka.