The Board of Directors of the Dhaka Chamber of Commerce and Industry (DCCI), led by its President Taskeen Ahmed, met Bangladesh Bank Governor Dr. Ahsan H. Mansur at the central bank headquarters in Motijheel.
The meeting focused on addressing the ongoing economic challenges, including inflation, high bank interest rates, and policy barriers faced by businesses, reads a press release.
During the discussion, DCCI President Taskeen Ahmed expressed concerns over the recent increase in VAT and taxes, coupled with high interest rates, which have significantly raised the cost of doing business.
Taskeen Ahmed urged the central bank to lower interest rates to boost private sector credit flow and investment. He also highlighted the difficulties faced by CMSME entrepreneurs in accessing credit facilities due to the requirement of 31 documents for the Credit Guarantee Scheme, often leaving small entrepreneurs discouraged.
The DCCI President proposed extending the loan classification deadline by 3-6 months to help businesses adapt to the current economic challenges and ensure smoother repayment capabilities. He further suggested relaxing policies for setting up overseas business offices to promote export and investment growth.
Taskeen Ahmed emphasised the need for greater accountability and transparency in the financial sector, including the central bank itself.
In response, Bangladesh Bank Governor Dr. Ahsan H. Mansur stated that the central bank has undertaken measures to curb inflation and expects positive impacts on the market soon. He assured that banks have been instructed to open Letters of Credit (LCs) without margins for essential goods to stabilize prices ahead of Ramadan.
The Governor highlighted that the dollar market is stable, with its value determined by supply and demand, while the central bank ensures rigorous monitoring. He added that if inflation decreases to around 7% by June-July, market-based interest rates would decline further.
Addressing DCCI's proposals, Dr. Mansur assured that the central bank would consider extending the loan classification period and examine the current conditions for establishing overseas business offices. He noted that remittance inflows and export earnings are on the rise, reserves are improving, and these factors will soon benefit the economy.
Dr. Mansur concluded by urging businesses to adhere strictly to compliance standards, emphasizing that the central bank would remain vigilant on this matter.
The meeting was attended by DCCI Senior Vice President Razeev H. Chowdhury, Vice President Md. Salem Sulaiman, and senior officials of Bangladesh Bank.
