The board of directors of Dhaka Chamber of Commerce & Industry (DCCI) led by its President Ashraf Ahmed called on the Governor of Bangladesh Bank Dr. Ahsan H. Mansur on 27th August 2024 at the Bangladesh Bank headquarters.
President of the DCCI Ashraf Ahmed warned during the meeting that rising interest rates could impede lending availability, particularly for CMSMEs. He said that Bangladesh Bank has several SME financing programs that can be expedited to speed up the financing procedure for this industry. The President of the Dhaka Chamber also asked for increased bank credit flow and the facilitation of foreign trade credit and loan procedures.
Above all, he requested the central bank to take the initiative in reducing the pressure of interest rates on loans to CMSMEs. He requested that the Bangladesh Bank not continue this policy for a prolonged period and to start reducing rates as soon as practicable. Ashraf Ahmed expressed, “We also want inflation to be controlled because inflation not only increases the cost of common people but also increases the operational costs of businesses.”
He also commented that if the bad loans of the banks come down, the lending interest rate can also decrease subsequently. He also welcomed the central bank’s initiative to bring stability to the country’s financial sector. The Dhaka Chamber President said that for the development of the CMSME sector, assistance is needed to deal with the pressure of interest rate increases and maintain the flow of credit.
Mansur stated that lowering the policy interest rate and other interest rates will be feasible if the current inflation can be reduced to a manageable level in the upcoming six to seven months. Additionally, he stated that the banking industry’s deposit collecting is currently vital and should expand by double digits. The governor placed a strong emphasis on improving the functionality of credit guarantee programs for SMEs. He underlined that to boost credit availability to the private sector, the rate at which the government borrows money must be restricted. According to him, enhancing payment history and reliability will boost entrepreneurs in obtaining foreign trade finance.
The Governor also said that a banking commission will be formed soon, based on which the necessary roadmap will be formulated to bring stability to the financial sector. He further advises new investors to invest in special economic zones to get all facilities together.
Deputy Governors of Bangladesh Bank Nurun Nahar and Dr. Md. Habibur Rahman, DCCI Senior Vice President Malik Talha Ismail Bari, Vice President Md. Junaed Ibna Ali and members of the Board were also present during the meeting.
