Leaders and CEOs of different leading businesses on Sunday voiced grave concern over the high interest rates in the banking sector, which are making business operations more expensive.
They were also critical of the new loan default policy that will come into effect in April. Besides, they said, energy crunch and the move to raise gas tariff will be detrimental to the economy.
They made these observations to the reporters after emerging from a meeting with the governor of Bangladesh Bank and its high officials on the premises of the central bank.
“The present situation is not conducive for businesses for various reasons, including high exchange rate of taka, high production cost and difficulties in opening Letters of Credit (LCs)”, said Anwar-ul Alam Chowdhury (Pervez), president of Bangladesh Chamber of Industries (BCI), who led the 13-member delegation during the meeting.
He called upon the government to address the problems as early as possible for the betterment of the country’s economy.
“We want ‘exit policy’ to leave the businesses rather than land in jail as loan defaulters due to the upcoming loan default policy.”
He said the government should include businessmen in the Bank Reform Committee and also emphasised the need for prioritizing the agro-processing industries while ensuring a smooth supply chain.
Mr. Chowdhury, also the chairman of Evince Group, told the media that many business entities will be forced to shut down if new loan default policy takes effect in April.
He said that the country’s businessmen are going through a critical period as they believe that the new rates of value added tax (VAT) and taxes on a number of products that were implemented recently and increased salary of labourers will put obstacles in the way of the flourishing economy.
The intentional default on the loan by any particular business groups should not result in other businessmen being held accountable, he said, adding that Bangladesh Bank and other scheduled banks cannot avoid liability for the loan default. He warned that if the industries aren’t provided with cash incentives, they will face closure.
Administrator of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Vice Chairman of Export Promotion Bureau (EPB) Md Anwar Hossain demanded a reduction in lending rates and removal of barriers to opening LCs.
Mr Nazmul Hassan Sohail, senior vice president and acting president of LFMEAB, Abdul Haque, president of BARVIDA, Moynul Islam Swapan, acting president of BCMEA and also vice chairman of Monno Group, Shahriar, president of BGAPMEA and also managing director of Adzi Trims Ltd, Hasan, managing director of City Group, Ahsan Khan Chowdhury, director of BCI and chairman and CEO of Pran-RFL Group, Shadab Ahmed, managing director of Coca-Cola Bangladesh Ltd, Matiur Rahman, chairman of Uttara Motor Corporation Ltd, Priti Chakraborty, senior vice president of BCI and chairman of Universal Medical College and Hospital Ltd, Mohammed Younus, vice president of BCI and managing director of Younus Group, and Amitava Chakraborty, adviser of the City Group were present.
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