The Federation of Bangladesh Chambers of Commerce and Industry on Wednesday urged the government to provide bank loans at 9 per cent interest for the small and medium enterprises sector. The FBCCI came up with the urge at an exchange of views programme on ‘Problems and Possibilities of SME Sector’, organised by the SME Standing Committee of the apex trade body at its office in the capital’s Motijheel area. Industries minister Amir Hossain Amu was present at the programme as chief guest while FBCCI president Abdul Matlub Ahmad, Bangladesh Bank deputy governor SK Sur Chowdhury and SME Foundation chairman KM Habib Ullah were also present. Mentioning that the key problem to the SME sector is bank loan, FBCCI president Matlub said the development of the sector was relatively low as banks offer loans at 17-18 per cent interest to the sector. SME loans should be given at 9 per cent interest to maintain positive economic growth in the country, he said adding that interest rate on deposits should be lessened if required. Industries minister Amu said the government wanted to encourage rural economy by expanding small, cottage and medium enterprises to reduce pressure on urban areas. He said big companies were establishing industries in different BISCIC Industrial Areas though some of the entrepreneurs could not expand their industries for scarcity of lands. Those who could not establish industries at the allotted plots in the BISCIC area will have their plots cancelled, the minister warned. Speaking at the programme, BISCIC chairman Khan said new initiatives had been taken to establish 24 more industrial areas across the country to decrease land insufficiency. Stating that some of the industrial areas have been developed unplanned, he said steps had been taken to solve these types of problems. In response to a business community’s allegation that ‘SME loans are hard to get’, Bangladesh Bank deputy governor Sur said Tk 38,858 crore was distributed as SME loans in 2010 whereas over Tk 1 lakh crore had so far been distributed in 2015. Criticising the banks, he said the banks were not interested in providing SME loans; thereafter Bangladesh Bank was very active to distribute SME loans. Sur also said Bangladesh bank was trying to reduce the SME interest rate. Industries secretary Mosharraf Hossain Bhuiyan and FBCCI’s SME standing committee chairman Nurul Gani Shovon also spoke at the programme.
