The Bangladesh Bank Governor, Dr Ahsan H Mansur, said that the central bank will explore the possibility of extending the current three-month loan classification period.
His remarks came in response to a request from Dhaka Chamber of Commerce and Industry (DCCI) President Takseen Ahmed during a courtesy meeting with the chamber’s board members at the central bank headquarters on Thursday.
The governor highlighted initiatives aimed at controlling inflation, expressing hope that their positive effects would soon be evident in the market. He mentioned that banks have been instructed to open LCs without margins to stabilise prices of essential goods during the upcoming Ramadan.
Dr Mansur assured that the dollar market is currently stable and driven by supply and demand, though the central bank remains vigilant in maintaining this stability. He also suggested that if inflation reduces to around 7% by mid-2025, market-driven bank interest rates could decrease further.
DCCI President Takseen Ahmed raised concerns about high interest rates increasing business costs, suggesting lower rates to boost private sector credit flow and investment. He highlighted the challenges faced by CMSME entrepreneurs, who must submit at least 31 documents to access benefits under the Credit Guarantee Scheme.
He urged the central bank to extend the loan classification period by 3-6 months to ease economic pressures on businesses, relax stringent policies on establishing overseas business offices to encourage exports and investments, and enhance transparency and accountability in the financial sector.
The governor assured that the central bank would review the loan classification period and consider easing conditions for opening overseas business offices. He noted positive economic indicators, including a stable dollar exchange rate, rising remittances, growing export earnings, and increasing reserves, which he believes will yield long-term benefits.
Dr Mansur emphasised the importance of business compliance, warning that the central bank will maintain strict oversight.
Currently, the dollar rate is Tk120 at banks and Tk125-130 in the kerb market.  The bank interest rate is more than 15%.
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and high officials of Bangladesh Bank were also present at the meeting.