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Matia for review of interest cut on savings tools

June 21, 2015 00:00:00

Agriculture Minister Matia Chowdhury has expressed reservations regarding the decision to cut interest rates on saving certificates and has urged the finance minister to 'seriously' reconsider the matter, reports bdnews24.com.

She reminded Parliament on Saturday of the government's responsibility towards low-income people.

The government has cut interest rates on all saving certificates by up to two percent, claiming the schemes added to its debt burden.

People were interested to buy saving certificates for their high interest rates compared to those of bank deposits.

Chowdhury said the interest cut on saving certificates would directly affect middle- and low-income people, retired persons, liberation fighters and teachers.

"I think it will shrink the income of lacs of families."

She said a major portion of the buyers of saving certificates were retired and elderly persons, and the number of such people, who do not have any government social security cover, was increasing.

"The government has a responsibility towards them," she said.

She said the decision would also affect teachers and widows.

"How will consumption increase if their income drops?" she argued.

"I shall tell the finance minister to consider (the matter) seriously." She also advised finance minister AMA Muhith to take proactive measures, instead, against loan defaulters.

"We have to increase savings as well as consumption," she said.

Consumption would generate demand in the internal market, she said, and that in turn would boost investment.

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