The central bank’s bailout committee aims to address loan rescheduling for non-willful defaulters but faces resistance from commercial banks struggling with high non-performing loans (NPLs). At a mid-February meeting with 15 banks, officials hesitated to reschedule Tk 500 million-plus loans, citing financial strain. The committee, led by Mamun Rashid, plans to identify affected businesses impacted by Covid-19, the Russia-Ukraine war, energy price hikes, dollar shortages, and the 2024 mass uprising. Banks suggest no changes to existing regulations, emphasizing prior relaxations. The committee will review global models from Indonesia, Thailand, and India to propose a bank-led solution. The Bangladesh Bank governor and CEOs will convene for further discussions. Businesses receiving three previous rescheduling opportunities will be excluded. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) supports the initiative, highlighting pandemic-driven financial struggles. The regulatory effort follows FBCCI’s request to Bangladesh Bank in January for business revival measures.
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