'Interest rate of bank loan is biggest barrier to industrialisation'

Prime Minister Sheikh Hasina has said the interest rate of bank loan is the biggest barrier to the country's industrialisation at this moment.

Hasina said the government earlier took initiatives to reduce the bank interest rate and provided some facilities to the banks. "Some banks brought down the interest rate to 9 per cent accordingly, but all didn't do so. It (the rate) was taken to 14-16 per cent again," she added.

Sheikh Hasina questioned why the banks did not reduce the interest rate despite enjoying the facilities. She also said the owners of banks are running mills and factories and also doing businesses, reports UNB.

The Prime Minister came up with the statement while inaugurating the weeklong first national industrial fair in the city on Sunday.

The Industries Ministry organised the National Industrial Fair 2019 at Bangabandhu International Conference Centre with a view to promoting and expanding the market of local industrial products and attract investment.

Noting that now she will have to interfere in this area, she said, "They're running banks and also industries, but won't reduce the interest rate. What businesses they have and whether they're paying tax and VAT properly."

Expressing here government's firm stance to bring down the interest rate of bank loan to a single digit, Sheikh Hasina said the government will take measures again to reduce the interest rate for the sake of the country's industrialisation.

"We'll sit again to discuss how to reduce the interest rate of bank loan," she said.

The Prime Minister urged the entrepreneurs to pay the bank loans and its interest in time for keeping the banks operational. "If so, it won't be very tough to reduce the interest rate," she added.