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Interest rates in corporate credit should be low so that industries may emerge in developing countries, do u agree?

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Question added by Syed Ali Imran , VP Corporate Investment Banking , Meezan Bank Ltd.
Date Posted: 2014/07/19
Deleted user
by Deleted user

Indeed interest rate should be low because it helps to generate more revenue of good operational profits and if cost of production increases parallal to increase in interest rate there is fierce issue in pakistan that the producers directly pass the burden to the end user or consumer and make his profirability consistent.

 

In my opinion rate of interest should be low it also increases industrialization in developing countries to boost and creation of employment.

I hope you understand my answer. thanks

Syed Ali Imran
by Syed Ali Imran , VP Corporate Investment Banking , Meezan Bank Ltd.

I agree Zaidi sb. And really thank you and Mr.Vinod

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

No. The interest rates in corporate credit need not be low. However, they are usually low because of the negotiating strength of the Corporate customer.

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