By Our Reporter  The high-interest rate on bank loans has affected the industrial sector badly. The businesses are unable to get new loans while the banks themselves have failed to recover loans. Affected by the high-interest rates, the business communities across the country were demonstrating against the rate until a few days ago. Now they have postponed their demonstrations citing the elections. Banks have increased the interest rate three times in the past year. Bankers argue rising interest rates are a global phenomenon. The high-interest rates have affected mostly small-scale industries, 80 per cent of which are said to be running on loans from banks; and with the hiked interest rate, they are not in a situation to pay them back. It is said that only 30 percent of the small and medium industries are in operation for a lack of finance and high-interest rates. Those demonstrating have demanded that the interest rate should come down to a single digit. Banks say they have their own problems and claim that the interest rates have increased due to the global economic situation, inflationary pressure, import-based economy and the strengthening of the dollar. The banks are also said to be facing liquidity problems.