“Due to high interest, cost of doing business is escalating and industries are losing their competitiveness,” reads the circular. The grave situation, typically caused by the exorbitant bank interest, made many bank borrowers fail to repay the bank loans, added the circular. Talking to Dhaka Tribune, Southeast Bank Managing Director Kamal Hossain said: “BB made a proper decision by not imposing the deposit rate. Interest rates on lending would be reduced if the high amount of defaulted loans was lessened, he added. On December 30 last year, Finance Minister AHM Mustafa Kamal said that the lending rate would be as high as 9% and deposit rate maximum 6% with effect from April 1.

Source: Dhaka Tribune February 24, 2020 17:15 UTC