Sunday, September 20, 2020 | ePaper

Bail out the loan defaulters is not working because of corruption cases

  • Print
THE Financial Institutions Division of the Finance Ministry would make an appeal to the Bangladesh Bank for extending the loan rescheduling opportunities at two per cent down payment to defaulters who filed writ petitions and are facing cases of the Anti-Corruption Commission. The decision was taken by the FID after the heads of state-owned commercial banks requested it at a meeting on January 9. It is believed that the step would help to reduce the burden of bad loans. The government made the much-talked-about loan scheduling facility effective since May 2019 and it is due to expire in February. We think providing relaxed loan restructuring facility to errant borrowers who filed writ petitions for not declaring them defaulters would increase the burden of bad loans. In this regard, the FID should encourage the state-owned commercial banks and the errant borrowers to settle issues through alternative dispute resolution system. The politically biased policymakers are in favour of providing the special loan to the errant borrowers and the loan swindlers to get loyality and unconditional support from them.
Meanwhile, Tk 12,394.43 crore in defaulted loans had been restructured allowing the defaulters to repay the outstanding loans in 10 years after making two per cent down payment with one year's grace period. The loan defaulters also will get privilege of 'one-time exit' along with enjoying interest waiver. Data compiled by the FID shows that the loan defaulters filed 10,551 appeals including 4,380 cases to avail the 'one-time exit' opportunity of the special loan restructuring scheme. They filed 2,880 cases against the Sonali Bank, the highest number for any bank to restructure defaulted loans to the tune of Tk 3134.5 crore. International credit rating agency Moody's Investors Service said persistent weakness in asset quality will result in poor corporate governance, weak laws and regulations that ultimately create 'negative outlook for the Bangladesh banking system'.
The banks are collapsing for stealing banks' money freely by politically powerful ones. Then there is no supervision over the bank management.  A man, Prasanta Kumar Halder, cunningly managed to take away about Tk 3500 crore from four sick financial institutions due to improper management and lack of supervision of authorities concerned.  It is safe and easy to all the thieves to flee away with people's money when robbery of money from different banks including the central bank of Bangladesh is going on rampant getting patronisation from ruling high-ups. What we know about the scheme not working is because most of the loan defaulters are facing corruption cases and cannot get bail to make the arrangement work.

More News For this Category

Huge project cost unjustified and must be recast

 THE government is set to conduct the National Population Census-2002 at a cost of over Tk 1761 crore up from Tk 237 crore spent in previous census in 2011. What

Killing is so easy and our police so powerful: Need is change of criminal politics

A TEXTILE mill worker at Manikganj Sadar Upazila was killed by his co-workers with pumping high-speed air into his body through rectum. The victim Md Julhas worked at Akij Textile

Hand In Hand Toward A Sustainable Food Future

Qu Dongyu :Five years ago, world leaders agreed on the UN's 2030 Agenda and its Sustainable Development Goals, with the aim of eradicating persistent global challenges such as hunger and

Vaccine Accessibility Priority Focus for 75th UNGA

Samira Sadeque :Key focuses of the upcoming 75th session of the United Nations General Assembly (UNGA) High Level Week will be the accessibility of vaccines and a renewed plea for

Readers’ Voice

Oh, Poor AmericaThese days I only watch CNN, so many things are happening in the USA that it has become like a Pandora box. The drama which is being played

Fragile future productivity shows poor development scenario of Bangladesh

Potential future productivity of Bangladesh is lower than not only the global average but also the South Asian region and the lower-middle-income countries' average, as per World Bank's Human

Russia`s involvement in Palestinian issue must be welcome

RUSSIA on Thursday said it would be a "mistake" to think lasting peace in the Middle East could be achieved without resolving the Israeli-Palestinian conflict. Moscow in a statement



Maria Hanif Al-Qassim :What do Walt Disney, Yuval Noah Harari and Steve Jobs have in common?Some may say fame, while others may say wealth. And while both may be

World Cleanup Day

World Cleanup Day

Prof. Dr. Ahmad Kamruzzaman Majumder :World Cleanup Day is observed on the third Saturday of September every year in an effort to keep the country clean. This year it

RAB, Police differ in investigation of attack on Ghoraghat UNO

A DINAJPUR court has recorded confessions of three witnesses under Section-164 in connection with a case filed over the attack on Ghoraghat Upazila Nirbahi Officer. The authorities, however, expressed their