In a recent development that is expected to infuse new energy to the readymade garment sector of Bangladesh, which has been facing the heat of high interest rates on lending, the country’s central bank, the Bangladesh Bank (BB), has reportedly started working on bringing down the industrial lending rate to a single digit with an aim to spur the country’s overall economic growth through job creation and increased investment.
As a part of the move, the central bank has sought information on outstanding industrial (manufacturing) loans from the scheduled banks within 48 hours, which will end today (Wednesday).
The banks have been instructed to provide the information in a prescribed format to the Department of Offside Supervision (DOS) of the BB through e-mail, according to an emergency instruction issued by the central bank on Monday.
According to the instruction, the banks will have to provide the weighted average lending rates (WALR) on outstanding large industrial (manufacturing) loans along with outstanding cottage, micro, small and medium industrial (manufacturing) loans as of 30 September 2019.
Large industrial (manufacturing) loans include credit to the readymade garment (RMG), textile, ship building and ship breaking, agro-based industry and other sectors.
Earlier on Sunday, the BB formed a seven-member high-powered committee to find out ways of bringing down the industrial lending rate to a single digit.
The committee has been asked to submit their report to the BB Governor within 7 working days.