The country’s businessmen have come out of default loan culture as the default loan rate in the banking sector has been reduced.
Finance Minister AMA Muhith said this while addressing a Memorandum of Understanding (MoU) signing ceremony held at the Bangladesh Bank headquarters in the city yesterday.
“Default loan rate was 40% after liberation of the country but now it came down to 11% which is tolerable,” he claimed.
A MoU was signed between Grihayan Tahobil and BGMEA for loan sanction to construct dormitories of the RMG workers.
Presided over by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Atiqul Islam, Finance Minister attended the ceremony as chief guest while Bangladesh Bank governor Atiur Rahman as special guest.
Addressing the ceremony, Finance Minister said: “Businessmen have graduated themselves from the default culture and existing 11% default loan rate is not so bad for the country’s economy.”
He also hoped that the default loan rate would come to the level of 8% soon.
Muhith, however, called upon the BGMEA leaders to pay back the loans that would be taken from Grihayan Tahobil.
He also urgewd the BGMEA leaders to response widely in taking loans on the basis of the signed agreement to remove housing crisis of the workers.
Noted that, Muhith visited the Bangladesh Bank yesterday for the second time during his tenure as a minister.
According to the MoU condition, listed members of BGMEA will be given housing loan at 2% interest rate with 60:40 loan-equity ratio.
BGMEA will verify the members for getting loans and will issue guarantee on behalf of loan clients. The association will be compelled to repay the loan if clients fail it back.
That means, success-failure of the loan program will be depend on BGMEA.
The fund size of Grihayan Tahobil stood at Tk327 crore, said Atiur Rahman.
He said, we have already sought an allocation of Tk200 crore from the finance ministry to expand the fund activities. There will be no fund crisis in loan supply to the BGMEA if we get the allocation from the government.
In his speech, the finance minister assured the governor of considering the proposal for fund allocation.
Apparel industry experienced negative growth in current fiscal year due to increase of production cost, said Atiqul Islam.
He urged the government to reduce lending rate and to extend time of relaxed loan reschedule policy for apparel industry.
