Bdnews24.com . Dhaka
The industries minister, Dilip Barua, on Wednesday said current interest rates were hindering industrial development in Bangladesh.
‘It’s hard to make profit at the current 14-15 per cent bank interest against industrial credit,’ Dilip told a delegation of the International Business Forum of Bangladesh at his ministry on Wednesday.
Sympathising with businesses over high loan rates, the minister nevertheless warned: ‘Credit facilities in the name of fake industrial projects will be stopped.’
Asked if interest rates would be reduced, he said, ‘We’ve got to talk this out with the bank owners.’
‘Even a 2-3 point cut would be enough,’ he said.
Calling on the minister to help with a rate cut, forum president Mahmudul Islam Chowdhury said, ‘Our existence in the international market is threatened by the abnormally high rates.’
Citing examples of much lower rates in the neighbouring countries and elsewhere, Chowdhury said, ‘Credit is available at 5 per cent interest in China and 8 per cent in India.’
On protecting local products, Dilip said, ‘It takes huge investment and time to turn a project into a profit concern and we must take protective measures for the country’s industries.’
‘There is a favourable atmosphere for investment in heavy industry and the government will give all-out help in gas, power, road and other infrastructure sectors to help the industry flourish,’ Dilip told the entrepreneurs.
He also stressed cooperation between the government and the opposition for boosting confidence in the entrepreneurs.
‘Let’s put the past behind and adopt a concrete policy to industrialise the country,’ said the minister.
He said the government would also talk with chamber leaders, experts and individual businesses on ways to boost industry.
Courtesy: newagebd.com
