Default loans in the banking sector of Bangladesh hit an all-time high of Tk 182,295 crore, but no reform programme to reduce it has been announced in the budget for the upcoming fiscal year.
Bad loans rose by Tk 36,367 crore in just three months
Action plan has already been taken, the central bank says
The falling foreign exchange reserves and the ever-rising defaulted loans are very concerning for the economy, and the government should respond fast to avoid a looming crisis, eminent economist Prof Rehman Sobhan said yesterday.
The defaulted loans in 10 banks, including four state-run lenders, increased at an alarming rate in fiscal 2022-23, indicating their worsening financial health.
The bad loans rose by Tk 24,419 crore in the last three months to June
How long till Farmers Bank pays back what’s due?
Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.
It is quite intriguing how the RPA amendment can be so accommodating to defaulters who are desperate to gain political power.
We are told that taka is available, and then it’s not there anymore.
The core problems of our economy are rooted in the very nature of the country’s governance, which has long been neglected.
While the government is distracted by elections, the financial economy will suffer
Why is the amount of default loans increasing day by day?
The default-loan narrative has smeared our otherwise powerful story of graduation from the Least Developed Country (LDC) status.
Around 70 per cent of default loans in the banking sector is concentrated in nine sectors of the economy as many borrowers are finding it difficult to pay instalments for the dragging economic slowdown while willful defaulters are also a major factor.
A parliamentary body today recommended strict actions to recover default loans from persons and organisations.
Finance Minister AHM Mustafa Kamal has asserted that default loans at all banks did not increase in the last six months.
Two things come easy in Bangladesh -- getting big bank loans and blissfully failing to repay. The money in the vaults seems to be the easiest prey today.
