Bangladesh: Government Moves to Cut Microcredit Service Charge

Source: The Financial Express

The government has taken a move to slash the interest rate or service charge of microcredit operations from the existing 24 per cent, as imposed by the micro-finance institutions (MFIs), to give poor borrowers some relief. To this effect, an 11-member committee, headed by Grameen Bank Chairman Prof Dr A K M Saiful Majid, has been formed. 

The committee held its first meeting last week, and it formed a technical committee to analyze cost of the MFIs' services and to determine if there is any scope to reduce the charges.