Dhaka,(Barta24.com): Finance Minister AHM Mostofa Kamal said yesterday (18 March) that to lessen pressure on the business men the compound interest will go instead simple interest will be imposed on loans.
In a meeting with the chairmen of government owned and private banks and directors held at the ECNEC meeting at Sher-e-Bangla Nagar the Minister disclosed it. Prime Minister’s adviser to private sector Salman F. Rahman was present in the meeting.
In foreign countries loans are not disbursed with compound interest, only in our country this practice is in vogue so it must be stopped, the Minister said.
He said there are lots of faults in the banking sector for decades which has become more bigger now and those are beyond rectification.
The Minister said that the banking sector cannot run with decade old loan defaulters. Now work shall have to be started to write off the loan statement and new balance sheet shall have to be made clean. This loan defaulting statement cannot continue for decades. The loan defaulters shall be dropped from the statement.
I will take legal actions against the dishonest business men. Good business men will be rewarded.
He further said next year the GDP growth will be around 8.11 to 8.25 percent. Because during last few years the GDP has rose above 7 percent. He said that the new law will be made for dealing the loan defaulting and paupers after the existing.