9% lending interest cap saved many businesses during pandemic: Kamal

Finance Minister AHM Mustafa Kamal today said many businesses would have abolished during the pandemic had the government not set the 9 per cent interest cap on lending.

Borrowers had earlier counted 18-19 per cent interest, which was rare across the globe, he said.

He came up with the remarks at a conference organised by Sonali Bank to mark its 50th anniversary at Bangabandhu International Conference Centre in the capital.

Businesses subsequently might have faced crisis to compete with other foreign businesses in the global market due to the high price of the products, Kamal said.

The high interest rate pushed the production cost that ultimately eroded their competition capacity in the global market, which is a common place for every business.

It was a good thing that the government had not refinanced to the state lenders in recent years to address their capital shortfall.

All state banks now enjoy profit, a sign of good financial health of them, he said.