Businesses urge BB to cut interest rates, expand export fund

Business leaders from major trade bodies including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI on Thursday urged the central bank to lower interest rates and increase Export Development Fund (EDF) to boost private sector recovery and exports.

They made the call during a meeting with Bangladesh Bank Governor Dr. Ahsan H. Mansur  at the central bank’s headquarters on Thursday.

They focused on tackling emerging challenges ahead of Bangladesh’s graduation from Least Developed Country (LDC) status, set for November 2026.

During the discussion, the delegation presented a set of proposals aimed at revitalising businesses affected by the July Uprising and preparing the economy for the post-LDC transition.

The delegation presented a series of proposals from the private sector to the Governor, aimed at strengthening and accelerating economic activities, and recovering businesses damaged by the July mass uprising.

The private sector delegation emphasised that LDC graduation will bring new pressures, particularly requiring businesses to adapt to changes in international trade privileges and global competitiveness.

Among the proposals and recommendations submitted to the central bank were- extending the tenure of the committee formed to provide policy support for the reconstruction of businesses and financial systems of affected loan recipients, establishing a ‘Point of Contact’, Setting up a dedicated ‘Point of Contact’ within Bangladesh Bank for the swift resolution of banking problems faced by export-oriented industries.

They also sought allowing SMEs (Small and Medium Enterprises) to open back-to-back Letters of Credit (LCs) without requiring a bond license, thereby easing trade finance for smaller enterprises.

The delegation included Md. Alamgir (Secretary General, FBCCI), former Vice-Presidents of FBCCI Abul Kashem Haider and Nizam Uddin Rajesh, former BGMEA President S M Fazlul Hoque, current BGMEA President Mahmud Hasan Khan, BKMEA President Mohammad Hatem, BTMA President Shawkat Aziz Russell, former FBCCI Directors Abdul Hoque, Gias Uddin Chowdhury (Khokon), Abdul Wahed, Anwar Hossain, Mohammad Jalal Uddin, President of Bangladesh CNG Machineries Importers Association Md. Zakir Hossain (Noyon) and General Secretary of Bangladesh Supermarkets Owners Association Md. Zakir Hossain.

The central bank governor listened to the demand of business leaders and assured  them to take some measures immediately and some other in gradually to increase the private sector credit pace.

The Governor was accompanied by Deputy Governors and other high-ranking officials of Bangladesh Bank.

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