Banking laws to be amended to create exit way for genuine loan defaulters

Staff Reporter :
The government is working to amend banking laws to create an exit way for genuine loan defaulters, as the default loan is a big problemme for the country.
“Discussions are underway in this regard,” Salman F Rahman, Prime Minister’s Adviser on the private sector said while addressing a seminar titled ‘The Role of PPP in Achieving Vision 2041’ organized by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) at its office in the city on Saturday.
He said, “Many countries, including India and China, have legal mechanisms that ensure exit ways for genuine loan defaulters. The problemme of default loans is not exclusive to Bangladesh.”
“In fact, many banks in India had to be merged due to default loans. In China, the government takes initiative so that genuine defaulters can continue production,” he added.
He also said there is a need to make successful the Public Private Partnership (PPP) method to move forward the economy braving the global economic challenges.
 “The government can accept proposals from those institutions which have necessary funding for initiating projects side by side having surety for getting bank loans. They should also have capacity to use technology,” he said.
Salman opined that those projects would become failed which would not have necessary funding for initiating projects side by side would not have access to bank loans.
The Adviser said in order to boost power generation in the private sector, the government had taken some initiatives as well as  
 signed agreements apart from amending the law so that investment friendly environment is created in the power sector.
State Minister for Planning Dr Shamsul Alam said that lack of trust and confidence is often evident between the government and the private sector entrepreneurs in case of undertaking projects under the PPP and the main reason behind this is many entrepreneurs could not pay back their loans in due time.
He opined that the entrepreneurs would have to come forward in this regard while such mistrust and lack of confidence could go away if non performing loans could be reduced.
FBCCI President Md Jasim Uddin said, “There is a mistrust regarding the PPP in our country. The government cannot trust the private investors, while private investors cannot trust the government. Such situation must be removed.”
Besides, we should come out from the emotional decision as we have not much success in PPP, he said.