Bangladesh Finance Minister Cites High Interest Rates as Main Problem of Microfinance

While inaugurating a three-day international conference on microfinance, Bangladesh Finance Minister AMA Muhith said that complaints of high interest rates and charges are the main problems of MFIs in the country.  Mentioning some of the other problems, Muhith said the borrowers are getting into ‘a debt trap’ in microfinance and the number of people coming out of poverty level through microfinance is not that much.

Muhith underscored establishing a microcredit bank instead of NGOs on non-profit base to make the operation in the sector more transparent. He also suggested that microfinance should be given to cooperative institutions and those should be owned by the borrowers.

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