TIB urges BB not to allow Beximco for rescheduling loan

The Transparency International Bangladesh (TIB) has called upon Bangladesh Bank to refrain from a self-defeating move that would grant a top-ranking loan defaulter for rescheduling Tk 430cr loan.

The TIB also expressed deep concern and disappointment over the reported move taken by the central bank, said a statement issued by TIB Executive Director Dr Iftekharuzzaman.

Read more: BB caves in to Beximco again

In the statement, the anti-graft watchdog appealed to the government to consider its longstanding recommendation to form an independent commission to recommend a new national banking sector strategy.

“Loan defaulters irrespective of identity or status cannot be allowed to dictate terms to BB and cause non-compliance of its own policy-decision to get illegitimate extension of endless privileges of rescheduling, nor can BB allow itself to be held hostage and continue to accumulate ever greater risks to the sector. We call upon the Central Bank to have the courage to play its entrusted role in national interest and refrain from any such move”, he said in the statement.

The rescheduling of the loan is ominous for the economy at present as the country is starving for cash and the government is resorting to a legal provision to go for an unprecedented type of borrowing from public and autonomous institutions that may lead to panic and paralyze the economy, he further said in the statement.

TIB asked the government to form a fully independent committee of experts consisting of reputed, independent and credible specialists to analyze the deepening crisis in the sector and recommend short, medium and long term strategy to address it, failing which the situation may become absolutely unmanageable causing the bubble of high growth to burst, the statement read.

According to media report published today (September 13), Bangladesh Bank is going to grant the rescheduling facility to Beximco Ltd which was granted in 2015 an unprecedented concession of similar rescheduling on condition that no further rescheduling would be applicable to this and other similar beneficiaries.