Micro-credit lenders charge 27pc interest: MuhithStaff Correspondent
Finance Minister AMA Muhith said on Tuesday that there was no study on how many people became self-reliant in the country borrowing from Grameen Bank and other micro-credit lenders who charge up to 27 per cent of interest.
He told parliament in the question hour that registered with the Micro-Credit Regulatory Authority, 643 micro-credit lending institutions including Grammeen Bank, BRAC, ASA, Proshika, Swanirbhar Bangladesh, and the government’s Bangladesh Rural Development Board, disbursed Tk 34,000 crore in credit in 2011.
The micro-credit lending institutions, he said, call the interest they charge as
On November 10, 2010, the Micro-Credit Regulatory Authority set the highest service charge at 27 per cent.
Grameen Bank offers four types of credit with interest rate ranging from 0 per cent to 20 per cent, Muhith said.
Replying to a question from AKM Maidul Islam, MP, Muhith said that Grameen Bank had 2,567 branches until April 2012 and its assets were worth 14 thousand 44 crore and 18 lakh taka as of December2011.
Grameen Bank had 83,79,273 members, as its clients are called, until April 2012, he said.
Replying to a question from Zahirul Huq Bhuiyan Mohan, MP, Muhith said that four directors of private scheduled banks were loan defaulters, including Mahbubul Alam Tara and ASM MinuddinMonem of NCC Bank, SM Abdul Mannan of Mercantile Bank, and MohammadLutfar Rahman of Premier Bank.
Replying to Benzir Ahmed, MP, he said that the state owned and private banks had 8,004 branches with total capital of Tk 54,993.32 crore.
He said Bangladesh Bank issued nine letters of intent allowing new banks.
The conditions of the letters of intent were 1) minimum paid up capital of Tk 400 crore mobilized through general shares, 2) an entrepreneur could have minimum share of Tk one crore and highest 10 per cent of the paid up capital, 3) the entrepreneurs would have to supply their capital from the neat asset shown in income tax return, 4) no loan or tax defaulters would be allowed to be entrepreneurs, 5) the banks will have to have same ratio of branches set up in rural and urban areas, 6) the banks will have to act as primary dealer.
Replying to Ahmed Nazmin Sultana, MP, the finance minister informed Parliament that a seven member committee was appointed headed by the registrar of joint stock companies and firms to identify illegal financial activities of enterprises of
Besides, he informed the House that the Anti-Corruption Commission and the National Board of Revenue were also holding their own investigations into the transactions of the Destiny Group.
Muhith informed the House that action could be taken against Destiny after the investigations were over.
Replying to Muhibur Rahman, MP, the finance minister told Parliament that the Indian authorities had been requested to clarify whether there is any conditions attached to the aid of 20 crore dollar offered by the Indian prime minister.
The government, Muhith said, was working on amending the Securities and
Exchange Commission Act of 1993 and Securities and Exchange Ordinance
of 1969 to bring stability in the stock market and protect the interests of investors.
Replying to Shahiduzzman Sarkar, MP, he said customs department had confiscated 24,469 kilograms of gold worth Tk 1147,72, 29,749.21 from
smugglers at Shahjalal International Airport between 1990 and 2011.
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