The president of Bangladesh Chamber of Commerce and Industry (FBCCI) said that businessmen are suffering due to the repeated policy changes of Bangladesh Bank. Mahbubul Alam.

He said, while doing a project, I think about bank loan interest rate, dollar exchange rate and then start working. But if the central bank changes the policy after a few days, then we will suffer. Of course, it is natural that traders will be affected by repeated policy changes. That is why I have requested the central bank not to change the policy repeatedly so that it is long-term. It will make business planning easier. The Governor of Bangladesh Bank has given an assurance in this regard.

He said these things in response to the questions of journalists after the meeting of business representatives with Governor Abdur Rauf Talukder at the Central Bank on Thursday afternoon.

Former president of FBCCI was in the delegation. Jasim Uddin, Senior Vice President Amin Helali, Apparel Sector BGMEA President SM Mannan (Kochi), Textile Sector BTMA President Mohammad Ali Khokon, Knitwear Sector BKMEA Executive President Mohammad Hatem, Metropolitan Chamber of Commerce President Kamran T. Rahman, Dhaka Chamber President Ashraf Ahmed and Chittagong Chamber President Omar Hajjaz. Meghna Group Chairman Mustafa Kamal, Pran RFL Group CEO Ahsan Khan Chowdhury and City Group Chairman Md. Hassan

FBCCI President said, I had a meeting with Bangladesh Bank Governor regarding the overall situation of the economy. Talked about the overall issue of the banking sector. However, the high interest rate of bank loans and the dollar rate have gained importance in the discussion. Our strong demand was that the dollar rate fixed at 117 rupees should not increase further. The governor assured that the dollar rate will be 1 taka more or less than 117 taka. Don’t go beyond it.

Mahbubul Alam said that due to the increase in the dollar price by 7 rupees, the amount of debt increased, the businessmen have applied for long-term loans of that amount. Because business has suffered due to the rise in the value of the dollar. Moreover, the governor also said that special benefits will be arranged for those whose loans have exceeded the single customer loan limit. He assured that the dollar market will be normal by December.

The FBCCI president also said that the governor said that he has left it entirely to the market regarding the interest rate. Cost of funds of various banks is 6 to 8 percent. So the interest should never go above 14 percent. Bangladesh Bank did not consult the stakeholders while changing any policy. It should be done. Then there will not be so many problems.

He said that no honest businessmen take money out of the country. No honest businessman keeps their export earnings outside the country. But it is true that there can be bad people in all sectors. But there is no opportunity to evaluate that sector with this example. So if anyone says that, he is wrong.

FBCCI former president. Jasim Uddin said that Bangladesh Bank has formally increased the single customer credit limit to 25 percent. On the other hand, banks have been informally told not to exceed the loan limit by more than 10 to 15 percent.

In this regard, the governor has assured that businessmen can take loans up to 25 percent from now. Besides, I told Bangladesh Bank that the interest rate should not increase. Because if the interest rate increases, the defaulted loans will also increase. And due to the rise in the currency exchange rate, traders have faced huge losses. Bangladesh Bank has been requested to prepare a road map to recover from this loss.

BGMEA president SM Mannan Kochi said that banks cannot make big investments anywhere except economic zones and investment zones given by Bangladesh Bank circular. Bangladesh Bank issued such circular without any discussion with us and without informing us. Many have already invested hundreds of crores of rupees in various sectors. Therefore, considering this issue, I have requested to withdraw this circular.

Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said, I cannot open LC due to lack of dollars. Meanwhile, EDF has been reduced to three billion. Due to this, traders are suffering. It has been suggested to use an alternative fund of the central bank to solve this problem. In response to the question whether traders can now open an LC at Tk 117, he said that if more money is taken from a trader then they have been asked to complain to the central bank. Then Bangladesh Bank will take action accordingly.

On May 8, Bangladesh Bank has withdrawn the six-month moving average rate (SMART) method of determining the interest rate of bank loans. Henceforth the loan interest rate will be determined on the basis of banker-customer relationship. The average interest rate on 6-month treasury bills has been withdrawn to make the loan interest rate fully market-based. A notification in this regard was issued by the Banking Regulations and Policy Department of Bangladesh Bank. But now Bangladesh Bank is retreating in the proper implementation of this directive. It is believed that the organization took such a decision because of the IMF.

Meanwhile, through a notification on Wednesday, Bangladesh Bank said that customers who exceeded the fixed single customer loan limit, were instructed to bring down the loan within the specified limit by December 31, 2022. However, some consumers relax the single consumer loan ceilingis applying for, which is contrary to the instructions. In such a context, to maintain stability in the banking sector by reducing large credit risk, upholding corporate governance and ensuring good practices in credit disbursement, instructions are being issued to ensure that the single customer credit limit is not exceeded at any time.