Staff Reporter :
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Thursday urged the Central Bank to guarantee a single digit interest rate on bank credit for the small and medium enterprises sector.
The FBCCI came up with the call at an exchange of views programme on ‘Problems and Possibilities of SME Sector’, organised by the SME Standing Committee of the apex trade body at its office in the capital’s Motijheel area.
Fazle Kabir, Governor of Bangladesh Bank, was present at the programme as chief guest while FBCCI President Abdul Matlub Ahmad presided over the function.
“The growth of SME Sector is seriously hampered due to high interest rates,” Matlub,” said, adding “The development of the sector was relatively low as banks offer loans at 17-18 per cent interest to the sector”.
He urged the Central Bank to force the country’s commercial banks to fix a single digit interest rate for SME credit to accelerate growth of the sector.
The FBCCI President also demanded for a 50 per cent cut in VAT rate for the SMEs.
“High VAT rate also hinders growth of SMEs. They should be given a 50 per cent VAT exemption for the first five years of their operation,” he added.
While addressing at the function Fazle Kabir said the government as well as the Central Bank wanted to encourage rural economy by expanding small, cottage and medium enterprises.
“The Central Bank has already taken various initiatives to ensure credit flow to the SME Sector. On top of this, thrust has given to provide SME loans to the women entrepreneurs,” he said.
Regarding lowering the interest rate on SME Sector, the Central Bank Chief said, the overall interest rates of the banking sector are continues to fall and which will also applicable for the SME lending.
