Editorial Desk:
Some 14,617 individuals and institutions took loans of Tk 1,741,348 crore since 2009 of which Tk 100,183 crore is unpaid and in default. The number of loan defaulters in September 2015 was 111,954 involving Tk59,105 crore, but the number shot up to 170,390, with Tk102,315.19 crore in bad loans by December 2018.
Meanwhile Bangladesh Bank granted special facilities with regard to interest on loans for loan defaulters to expedite debt servicing in the banking sector in June 2019.The latest directive of the central bank says defaulters can regularise their bad loans now by paying only a 2% down payment, instead of 10 to 50 %. Trading sectors like wheat, food items, edible oil and refinery, and ship breaking, and other sectors where a huge number of bank loans have remained unpaid for long, will be considered for the latest loan rescheduling policy.
In all cases, defaulters have to apply for the facility within 90 days of the circular. The loan defaulters have to repay their rescheduled loans within the next 10 years, with a one year grace period, according to the circular. The rescheduled loan would have to be repaid at only 9% interest rate.
Some 14,617 individuals and institutions took loans of Tk 1,741,348 crore since 2009 of which Tk 100,183 crore is unpaid and in default. The number of loan defaulters in September 2015 was 111,954 involving Tk59,105 crore, but the number shot up to 170,390, with Tk102,315.19 crore in bad loans by December 2018.
Meanwhile Bangladesh Bank granted special facilities with regard to interest on loans for loan defaulters to expedite debt servicing in the banking sector in June 2019.The latest directive of the central bank says defaulters can regularise their bad loans now by paying only a 2% down payment, instead of 10 to 50 %. Trading sectors like wheat, food items, edible oil and refinery, and ship breaking, and other sectors where a huge number of bank loans have remained unpaid for long, will be considered for the latest loan rescheduling policy.
In all cases, defaulters have to apply for the facility within 90 days of the circular. The loan defaulters have to repay their rescheduled loans within the next 10 years, with a one year grace period, according to the circular. The rescheduled loan would have to be repaid at only 9% interest rate.
This is done as mercy but to revive businesses and jobs to be created.
We find the decision most sensible in the sense that the loans were taken by businessmen as part of business with banks. Some suffer from false jealousy and forget that the banks survive with money they get from businessmen as interest against loans. Loan defaulters are not bank looters who have no business connection with the banks.
It surprises us when we read adverse reactions of some quarters to the special terms offered to the loan defaulters for the economic considerations. In our view this decision of the government should have been taken long before.
It was a wrong advice to treat the loan defaulters indiscriminately as criminals. Most of them have industries and other properties mortgaged with the banks. The loan default is a hazard of business and all over the world special consideration is shown for saving the banks and businesses. Often loan defaulters’ economic conditions remain beyond the control of their businesses.
We see, these businessmen couldn’t negotiate with the banks or make alternative arrangements as the businessmen were kept in jail by lodging money laundering cases. Thus the banks were not getting their money and businesses were also ruined.
We further believe that it was an act of sabotage to keep them in jail as criminals by starting money laundering cases. The definition of money laundering is such that there can be money laundering case against any businessman who has export-import business.
Interestingly, those critics of the government policy towards loan defaulters are not at all critical of the straightway bank looters who through manipulation robbed taka thousand of crores.
Some of them committed robbery at the State Bank and outside but no serious step was taken against them. Because looting is easy cash corruption and can be shared with others easily.
The Bangladesh Bank governor was called a hero just because he resigned while it should have been his responsibility to take actions for recovery of the money.
One looter of the Farmers Bank has been rewarded to be a member of the parliament. Perhaps he was fit to be the finance minister in the eyes of the present government.
We want to see that stern actions to be taken against the looters of public money who are also the biggest money launderers.
It surprises us when we read adverse reactions of some quarters to the special terms offered to the loan defaulters for the economic considerations. In our view this decision of the government should have been taken long before.
It was a wrong advice to treat the loan defaulters indiscriminately as criminals. Most of them have industries and other properties mortgaged with the banks. The loan default is a hazard of business and all over the world special consideration is shown for saving the banks and businesses. Often loan defaulters’ economic conditions remain beyond the control of their businesses.
We see, these businessmen couldn’t negotiate with the banks or make alternative arrangements as the businessmen were kept in jail by lodging money laundering cases. Thus the banks were not getting their money and businesses were also ruined.
We further believe that it was an act of sabotage to keep them in jail as criminals by starting money laundering cases. The definition of money laundering is such that there can be money laundering case against any businessman who has export-import business.
Interestingly, those critics of the government policy towards loan defaulters are not at all critical of the straightway bank looters who through manipulation robbed taka thousand of crores.
Some of them committed robbery at the State Bank and outside but no serious step was taken against them. Because looting is easy cash corruption and can be shared with others easily.
The Bangladesh Bank governor was called a hero just because he resigned while it should have been his responsibility to take actions for recovery of the money.
One looter of the Farmers Bank has been rewarded to be a member of the parliament. Perhaps he was fit to be the finance minister in the eyes of the present government.
We want to see that stern actions to be taken against the looters of public money who are also the biggest money launderers.
