A former central bank governor has criticized a Tk 550 billion interest waiver for top loan defaulters as “highly objectionable.” Speaking at an event in Dhaka, he urged government banks to classify these loans as defaulted and warned that ongoing money laundering, corruption, and loan defaults could threaten economic stability. He doubted the government’s FY25 budget target of reducing inflation to 6.5%, noting the current rate is closer to 10%. He emphasized the need for balanced stocks and supplies to prevent artificial crises and advocated for increased borrowing through savings tools instead of heavy bank borrowing. He raised concerns about Tk 960 billion in foreign loans mentioned in the budget, suggesting reduced reliance on both domestic and foreign loans. His remarks were made at a debate event where Jagannath University won against Comilla Victoria Government College, with the judges including several journalists.
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