Matia slams Muhith for interest rate cut on saving certificates

Agriculture Minister Matia Chowdhury on Saturday criticised the Finance Minister for

proposing interest rate cut on all saving certificates in the upcoming fiscal year. “The

interest rate on all saving certificates has been slashed by at least two percent, which will

directly affect the middle-class and lower middle-class, elderly people, women, freedom

fighters, teachers and employees,” she said participating in budget discussions in

Parliament. Besides, tax at source has been imposed on interest from the saving certificates,

which is another big blow to tens of thousands of families across the country as their

income will decline sharply, the minister said. Matia questioned how the market economy

will grow through slashing their incomes. “The consumption will not increase if they don’t

have money in their hands.” Noting that there are some 1.5 crore elderly people (10 percent

of population) in the country, she said the government should stand beside them as it is not

possible for them to become businessmen at this age. “If they (elderly people) go to invest

the money through other people, they will get deceived.” Matia requested Finance Minister

AMA Muhith to rethink about the matter as there is nothing wrong to help this section of

people, and also expedite the drive against loan defaulters. She suggested the government

to take more loan from commercial banks as there is sufficient liquidity in there. Matia

mentioned that if the government takes additional loan of Tk 3000 crore from the banks,

the businessmen will face no problem. “The businessmen can take loan from abroad now as

the central bank is giving approval.