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Writ filed challenging BB-set 9pc lending rates

Special Correspondent |
Update: 2020-03-01 1:36:53 PM
Writ filed challenging BB-set 9pc lending rates
High Court

DHAKA: A writ petition was filed on Sunday (Mar 01) challenging the legality of a circular issued by Bangladesh Bank setting lending rates on all loans except those on credit cards at 9 percent.

Mahfuzur Rahman, a student law department of a university, filed the write petition, said his lawyer Barrister Syed Sayedul Haque Suman.

The bench of Justice Tariq ul Hakim and Justice Md Iqbal Kabir Lytton will hear the petition, he said.

On February 23, the central bank issued the circular setting lending rates maximum 9 percent for all sectors except credit cards with effect from April 1.

The BB, however, kept unchanged the interest rate at 7.0 per cent for exporters.

From the current year, banks will not be allowed to disburse loans to the industrial sectors less than their average outstanding credit in the last three years.

The circular said the present high bank interest rates are impeding the growth of the country’s small, medium and large business, and services sector.

On December 30 last year, finance minister AHM Mustafa Kamal told reporters that the single digit interest rate on all loans, excepting credit cards, will take effect from April 01.

BDST: 1235 HRS, MAR 01, 2020

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