Savings policy for ex-govt officials soon
The government is to introduce an alternative policy for the retired government officials after reducing the interest rate on savings bonds, said Finance and Planning Minister M Saifur Rahman yesterday.
The finance minister was speaking to journalists at his office.
Interest rates for bank loans cannot be brought down if the interest rate on savings bonds is not reduced. And investments will not flourish if bank loan rates are not decreased, said the minister.
The interest rate on savings bonds should be close to the treasury bill rate, he said.
Currently, there are two savings bonds in the market with 12 and 12.5
per cent interest rates.
The rates will be changed according to the treasury bills rates in December.
The five-year savings bonds will be replaced with five-year treasury bills and the three-year ones will be replaced with three-year bills.
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