Staff Reporter :
An initiative has been taken to bring private sector foreign loans under surveillance. For this purpose, private entrepreneurs have been instructed to provide information on loans taken from abroad to be included in the Credit Information Bureau (CIB) database of Bangladesh Bank.
Additionally, details such as the quality of these loans, the country of origin, the currency in which the loan was taken, and the approving authority must also be submitted. Starting from November, in
formation for the previous month must be submitted every month.
Bangladesh Bank issued this directive in a circular on Monday. It stated that the step has been taken to manage risks of foreign loans (including suppliers’ credit), enhance accountability, and ensure the soundness of the country’s financial sector.
The directive further stated that if any foreign loan is settled, a new loan is contracted, or if the status of a loan changes for any reason, it must be immediately updated in the CIB. Banks will be fined for providing incorrect information.
Currently, no information on private sector foreign loans is included in the CIB database. However, all types of domestic bank loan information are available there. When a new loan is taken, banks check the CIB record of the institution.
According to Bangladesh Bank data, by the end of June, foreign loans in the private sector declined to USD 19.78 billion, down from USD 19.88 billion three months earlier. However, government sector loans increased to USD 92.38 billion, from USD 84.92 billion three months earlier.
