• Sunday, Jun 07, 2020
  • Last Update : 12:02 pm

DCCI fears soaring NPLs to increase cost of doing business

  • Published at 10:29 pm January 20th, 2020
DCCI
Delegates present at a press conference at the DCCI conference hall in Dhaka on Monday, January 20, 2020 Collected

The DCCI new President Shams Mahmud made the remark at a press conference at the chambers conference hall on the current economic situation in the country

The Dhaka Chamber of Commerce and Industry (DCCI) on Monday expressed its fear that the cost of doing business would increase because of the soaring nonperforming loans (NPLs) in the banking sector.

The DCCI new President Shams Mahmud made the remark at a press conference at the chambers conference hall on the current economic situation in the country.

“The NPLs has increased the cost of borrowing and that in turn pushed the cost of doing business up,” he pointed out.

Mahmud suggested identifying the willful defaulters to control NPLs. 

But if someone fails to repay his loan due to delayed power or energy connections, he or she should not be considered willful defaulter,” he said.

The business leader hoped that the government commitment of cutting down lending rate to single digit would come into effect in April this year.

Mahmud also demanded single digit loan facility for the SMEs as well and said that micro credit and banking loan to SMEs were different things. 

On government's bank borrowing, he said the government borrowing from the banking sector was for the development of the country's and the private sector would not be affected by it.

“Some private sector companies are now availing foreign funds as their credit source,” he added. 

Asked about the overall economic status of the country, the DCCI president said that considering the global political and economic situation, Bangladesh was passing challenging time. 

The chamber stressed vibrant secondary bond market and green field projects or companies on the capital market for the development of public infrastructure.

The DCCI president welcomed the prime minister's intervention and her six concrete directions to revive the stock market. He also called for allowing company buy back system and good governance in the country’s capital market.

Mahmud said RMG was the largest export earning sector, but other sectors should also be developed to back RMG. 

To promote other sectors, he urged for bonded warehouse facility, back to back LC to leather made products, tax rebate and new technology adoption. 

He demanded steps to ensure that no one was subjected to double taxation. 

Forward linkage of RMG was good but the backward linkage industry of RMG and textile sectors needed a push, he said.

The DCCI policy was for strengthening Public-Private Partnership (PPP) and amendment of Companies Act and the chamber was working for implementation of one stop service at DCCI in collaboration with Bangladesh Investment Development Authority (BIDA).

DCCI Senior Vice President NKA Mobin, Vice President Mohammad Bashiruddin, Director SM Zillur Rahman, Waqar Ahmad Choudhury and Rashedul Karim Munna were present at the press conference.

53
52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail