Business leaders have urged Bangladesh Bank to reinstate single-digit lending rates, warning that the current interest levels, now exceeding 14 percent, are undermining investment, growth, and competitiveness.

The call came during a meeting between a 14-member delegation of major trade bodies and Bangladesh Bank Governor Ahsan H Mansur. The discussion reviewed the state of trade and the economy, which have faced fresh challenges amid political unrest following last year’s uprising.

The delegation included representatives from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association (BTMA).

BTMA President Showkat Aziz Russell told the press that the textile and garment industries were under “severe financial strain” and needed single-digit lending rates to survive. He also raised concerns about five banks undergoing mergers, which he said owed large sums to textile mills but had failed to make payments, putting mills at risk of defaulting on their own loans.

Russell urged the central bank to issue clear recovery guidelines and address market distortions caused by weak industries selling yarn below cost. He also proposed extending until December 2026 a circular that allows importing industrial raw materials on credit.

FBCCI Secretary-General Md Alamgir Hossain echoed the concerns, saying the current interest regime was unsustainable for SMEs. He called on the central bank to reduce rates to single digits in the next monetary policy to support competitiveness, investment, and inflation control.