The Bangladesh Merchant Bankers Association (BMBA) leaders yesterday agreed to waive 50 percent interest on margin loans of the small investors as per a recent government decision.

The merchant bank leaders made the decision at a meeting held yesterday in Dhaka attended by its executive members.

“We sat to discus the issue of waiving 50 percent interest on margin loans taken by retail investors who suffered losses due to recent debacle in share market”, said Mohummad A Hafiz, president of BMBA.

He also said each merchant bank agreed to waive interest and the process wave the interest would begin soon.
Earlier on March 4, the government waived 50 percent interest on margin loans for investors who borrowed up to Tk 1 million and suffered losses due to plunge in share prices during the last one year.

The government also offered 20-percent quota in all initial public offerings (IPOs) to be offloaded in 2012 and 2013 by government or private entrepreneurs.

On February 22, the government formed a special committee led by Investment Corporation of Bangladesh Managing Director M Fayekuzzaman to make recommendations on giving compensation to retail investors who suffered losses during the market crash.

The committee came up with various recommendations, including waiving interests and IPO quota.

The Daily Sun/Bangladesh/ 8th March 2012