Finance Minister AHM Mustafa Kamal has said the implementation of the proposed single-digit interest rate has been deferred by three months to avoid complications.
"Hopefully, the single-digit interest rate -- highest 6% for deposit and maximum 9% for lending -- will now be implemented from April this year. The government has taken a tough stance about implementing this rate," he said while talking to reporters after a meeting of the Cabinet Committee on Public Purchase in Dhaka on Wednesday.
He said all had been ready to implement the proposed 6-9% interest rate for the manufacturing sector from January 1, reports UNB.
"But, during a meeting with bankers, it was discussed that if the proposal is implemented for only the manufacturing sector, it will create lots of complications as many industrial sectors will be left out of the benefit.
"To avoid these complications, Prime Minister Sheikh Hasina wants to apply such single-digit rate for all kinds of banking loans. That is why we have given a three-month time for banks to get prepared to apply the rate for all the sectors," the minister added.
He said all kinds of businesses -- from manufacturing to trading -- are contributing to the economy and therefore every sector should get the benefit of the single-digit interest rate.
Mustafa Kamal said it will initially be hard to implement the single-digit interest rate for all the sectors.
"But once it is implemented, the entire economy will largely be benefited."
He also said banks pay 2-3% interest on deposits all over the world except a few countries like Bangladesh.
"Even, in many developed countries, if you deposit money with banks, they will charge for such deposits instead of paying you interest," he said, adding that if the single-digit interest rate is not implemented, there will be no industrialisation.