Dhaka: Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Thursday reiterated its demand for lowering lending rates and sought effective steps of the central bank to this effect.

‘The interest rate should not be more than the cost of fund plus 3.0 percent for the productive sectors and not over 9.0 percent for other trade, business and investment’, Abdul Matlub Ahmad, president of the FBCCI, said during a meeting with Bangladesh Bank (BB) Governor Atiur Rahman. Ahmad led a delegation of the country’s apex chamber-body to the governor at BB headquarters in Dhaka.

The FBCCI chief also suggested the central bank to set the loan disbursement target on turnover basis for women entrepreneurs, and take effective steps to reduce non-performing loans so the businesses and entrepreneurs can get adequate fund for expanding their trade and investment.

Ahmad said that the chambers and trade bodies at 64 districts should be involved in expanding SME sector, with funding through central bank.

He also put forward some other recommendations to the meeting, including further development of SME sector, introduction of housing fund for garment workers and expansion of cash incentives, covering different sectors like furniture.

Responding to the demands and the suggestions, BB governor said the interest rate could not be lowered to single digit without containing further the rate of inflation.

He said the rate of food inflation showed declining trend in the recent times, but the central bank could not intervene to control overall inflation in the era of market economy.

Rahman, however, said the lending could be cut further in phases, with bringing the overall rate of inflation further down.

He also assured the business leaders of providing them with all possible support from the central bank to help them flourish their trade, business and investment.