Saturday, February 22, 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

Keep three-wheelers off the highways to avert accidents

ACCORDING to a recent study, commuters' depending more on three-wheelers and motorcycles has contributed to increasing the number of road accidents in recent time. Due to this reason, the number

21 February should be celebration of free speech

THE historic Amtala, where Language Movement activists gathered on February 21, 1952 to defy a curfew and protest the then Pakistan government's refusal to recognise Bangla as one of the

21 February Aspiration And International Recognition

Mir Mahmudul Haque Chowdhury :Mother language is an inherited language of each and every man to express his own ideas, feelings and emotions. The words 'mother' and 'mother language' are

Impact Of 4th Industrial Revolution

Md.Mizanur Rahman ACS :Over the past 300 years, waves of technology have impacted our lives significantly. Subsequently, the economy has been shifted to industrial economy from the agricultural economy. Within

South Asian leaders may think again about reactivating the SAARC

THE Himalayan landlocked nation Nepal has laid emphasis on holding a dialogue among the heads of the governments of South Asian countries to reactivate South Asian Association for Regional Cooperation

We need a caring govt: Mere court's directions cannot go far

THE High Court Division on Tuesday directed the government to ensure setting up breastfeeding and baby care corners in the country's all the mills and factories. Most of the working

Shaheen Bagh The Driving Force Behind AAP's Success

Aijaz Zaka Syed :So the aam aadmi's 'jhadu' (broom) has swept away the toxic rubbish that the BJP had flooded the national capital of Delhi with. The credit for the

Tulip In The Warmth Of Winter

Zasim Uddin :The name of the national flower of Turkey is Tulip, and in the Netherlands Tulip flowers are widely cultivated. At present, the Netherlands is the main producer of

Corruption still rampant in land offices

High corruption in Sub-Registrar's office is not unknown to service seekers and masses. There are widespread allegations the Land Offices across the country are the safe havens of corrupt officials

Food Safety Authority should be more active to root out prime causes of making foods toxic

BANGLADESH Food Safety Authority has found heavy metal presence in 63 samples of pesticide out of 67 tested recently. Some of the pesticides contained one milligram of heavy metal or