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Risky bank loans

Risky bank loans

There has been concern in the banking sector about the huge amount of risky loans.

It is to be noted that according to the rules of the banking sector, if 6 installments of a loan are unpaid, that loan is considered as Special Mention Account (SMA).

And a loan that is not repaid on the due date is called an overdue loan. However, in case of term loan, such loan has the opportunity to stay for 9 months. However, if this time limit is exceeded, it will be defaulted. The fear is that at present the amount of such debt is at least one and a half lakh crore rupees.

Needless to say, this Rs 1.5 lakh crore in arrears is the first step towards defaulting on loans by banks. If the installments of these loans which are in the pre-default stage are not paid, it will be added as defaulted loan. If so, it will bring bad news for the entire economy, including the banking sector.

According to the latest report of Bangladesh Bank, the amount of SMA loans in the banking sector has increased by more than Tk 2,500 crore in just three months. The consequences of defaulting loans are usually twofold, with a large portion of them at risk of default.

In this context, the recent statistics indicate that special care should be taken now, especially in the area of ​​debt control. Otherwise, it will be difficult to survive the disaster.

At the end of March this year, the number of defaulters in the country has increased by Tk 2,564 crore as compared to the same period last year. The worry is that the chances of recovering this huge amount of defaulted loans are very low. Because, experts believe, most of the defaulter's money has already been smuggled abroad.

They fled abroad whenever they wanted to bring the Nat gurus associated with it under the law. As a result, it is clear that it is not possible to recover money from these influential defaulters under the existing law. In this case, importance should be given to the formation of a separate tribunal.

According to the central bank, defaulted loans have quadrupled in the last ten years. However, the government has almost finalized the draft of 'Bangladesh Asset Management Corporation Act 2020' with the aim of building a debt-free country ahead of Mujib Year, which states that the Asset Management Corporation will be able to sell the entire property of the defaulter if it fails to recover the money by leasing it to someone else. .

One of the reasons why defaulted loans do not decrease but increase day by day is that no effective action is taken against intentional defaulters. Apart from establishing good governance and accountability in the banking sector, it is expected that the Bangladesh Bank and the government will take timely steps to ensure that large sums of risky loans do not turn into defaulted loans.

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