Some breathing space for borrowers

FE Team | Published: April 24, 2019 20:42:08

I would like to thank Bangladesh Bank for giving some much-needed leeway to term loan borrowers. In order to facilitate business activities, the central bank recently revised loan classification rules to treat unpaid installments of a term loan 'overdue' after six months of its (loan) 'expiry' date. This will help investors and industries.
Many genuine borrowers have been facing a difficult time to get back on their feet. But habitual defaulters should not get this chance as they do not deserve it.
Despite repeated assurance from the government, the commercial banks are charging 12 to 15 per cent interest which is excessive. Due to high interest rate, we are losing our competitive edge in the international market and many industries are becoming sick. On the other hand, the number of loan defaulters has been increasing.
I hope the government will bring down the loan interest rate to single digit for the industrial sector. We should make our policy business-friendly so that our economy can be benefited in the long run. Such steps will ensure more investment and employment by increasing economic activity.
Sajjad Hossain
Gulshan, Dhaka