The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have urged finance minister AHM Mustafa Kamal to enforce a single-digit lending rate immediately instead of April 1.

Top private commercial banks during a meeting with Kamal recently agreed to bring down interest rates to 9 per cent on all loans barring that on credit cards from April 1.

BGMEA president Rubana Huq, in a letter to the minister, said the prime minister has instructed the authority to reduce the interest rate to a single-digit mainly to help cut operational costs, boost investments and achieve competitiveness against the competitors.

The PM's instructions came following the long-cherished demand for the same from the country's all trade bodies including BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA), Bangla media reports quoted her as saying.

The textile and readymade garments (RMG) industry has been facing a 'critical situation', including an increase in its operational costs to sustain, Huq observed.

In such a situation, she said, implementation of the decision about the 9 per cent interest rate on bank loans with immediate effect is a must to increase exports, boost investments and reduce business costs.

Published On : 03-01-2020

Source : Fibre 2 Fashion