Bangladesh, March 19 -- Finance Minister A H M Mustafa Kamal said the government would encourage banks to offer simple interest loans instead of compound interest ones from the next financial year (FY).
"Simple interest calculation will be applicable (in the case of bank loans). This will be announced in the next budget," the minister said on Monday.
He was talking to reporters after an exchange of views meeting with directors of the state-owned banks at the NEC conference room in the city.
There is no country in the world where loan interest is calculated on a compound rate, he said, adding, "They follow simple rate."
For long term financing, the minister announced that the bond market would be developed shortly.
Noting there is no bo...