Professor Abu Ahmed speaks to DOT : The rate of defaulted loans has not come down with loan reschedule of 170 candidates for the upcoming parliamentary elections slated for December 30. The candidates have rescheduled their loans for positive result in the polls. Reschedule does not mean repaying loans. I think the loans will not be repaid whatsoever.
The loan defaulters have only kept the process functional through down payment. They will be included on the list of loan defaulters again after the elections. The banks should have seized the opportunity of realising more money by increasing the rate of down payment.
Bangladesh Bank could take advantage of the situation ahead of the polls. The huge cash inflow into the banking sector could have had a positive impact on the country’s economy.
It is due to the negligence and lack of proper management of the central bank for which the defaulted loans are soaring. The banks should rein in disbursing loans. There should have a certain law as to how much loan can be disbursed.
Professor Abu Ahmed is an economist
Based on an interview by Tanzina Tanin, translated by Hossen Sohel
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