Govt takes measure to curb default loans

block

Special Correspondent :
In a bid to address the escalating issue of defaulted loans, the government has implemented various measures to expedite the settlement of pending cases with the Artha Rin Adalat (Money Loan Court).

This initiative comes amid a record high in defaulted loans within Bangladesh’s banking sector, which have reached Tk 182,295 crore.

In this regard, Minister for Law, Justice and Parliamentary Affairs Anisul Haque on Sunday said that three more Artha Rin Adalat will be established in the country whereas there are already four such courts are in Dhaka present at the moment.

Besides, two more Artha Rin Adalat will be established in Chattogram and if needed the number of such courts will be increased further.

The Law Minister made these remarks while speaking to journalists at the inauguration of the 16th orientation course for joint district and session judges at the Judicial Administration Training Institute in the city.

block

According to the latest data from Bangladesh Bank, defaulted loans surged to Tk 182,295 crore by the end of March, up from Tk 145,633 crore at the end of December.

This marks an increase of Tk 36,662 crore in the first quarter of the year compared to the preceding quarter. By the end of March, the total disbursed loans stood at Tk 1,640,855 crore, with 11.10 percent of these loans classified as defaulted
Bad loans in the banking sector stood at only Tk 22,481 crore when the Awami League formed the government in 2009.

“The government wants to reduce the amount of defaulted loans to continue the trend of development. Default loans considered as the enemy of a prosperous economy,” Anisul Haque said.

Therefore, the Law Minister advised the judges to follow the alternative dispute resolution method more effectively to settle the loan default cases quickly.
He said, according to Section 46 (5) of the Artha Rin Adalat Ain, necessary steps should be taken by the Plaintiff/Decree party in time through proper and regular coordination between the Court, Chief Executive Officer (Financial Institution/Banker) and Bangladesh Bank.

Besides, it is necessary to ensure the accountability of the bank or other financial institutions regarding the granting of loans and the liability of the plaintiff in collecting the loans, he added. Comparing the judicial department’s budget allocation with other governments, the Law Minister said, “ It is unbelievable fact that the BNP-Jamaat government and the caretaker government spent only Tk 1,650 crore for the law and judicial department in eight years from 2001 to 2008, while Prime Minister Sheikh Hasina’s government has allocated Tk 2,022 crore for the law and judiciary department in the budget of 2024-2025 fiscal year.”

block