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Article: Interest rates again, THE INDEPENDENT

Article from:
The Independent (Bangladesh)
Article date:
September 18, 2003
Author:
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As the manufacturing sector has become more sophisticated the financing of new projects has become more elabourate. There is growing awareness of the negative impact on returns to owners of the high interest rates. The interest rates are starting to influence investment behavior but this is still a modest impact. Furthermore, with variable interest rate loans the relevant question is the long run real interest rate and that is anyone's guess. The reduction of interest rates will have the most impact on the management of projects rather than the initiation of projects. It will also encourage larger, more complex projects. Equally, if interest rates are not reduced then the ...

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