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.