‘Honest loan defaulters to get special scheme to pay off debt'

Published: March 25, 2019 18:30:07 | Updated: April 04, 2019 16:46:23

Finance Minister AHM Mustafa Kamal has said the government has unveiled a new proposition to allow ‘honest loan defaulters’ to pay off their debts.

"Those who are unable to pay, but can give adequate justification for their situation, will be allowed to pay off the loans with a 2 per cent down payment on the loan amount and 7 per cent interest over 12 years," the minister said after a meeting at his office in Sher-e-Bangla Nagar on Monday.

The decision was taken based on the recommendations of the committee formed by former Finance Minister AMA Muhith to fix major issues in the banking sector, reports bdnews24.com.

The alternative will soon be available to defaulters, Kamal said.

Bangladesh Bank Governor Fazle Kabir, Secretary of Finance Abdur Rouf Talukder and other senior officials of the Ministry of Finance were also present at the meeting.

 “We sat today to discuss our banking sector. Our brother and former Finance Minister Muhith had formed a committee led by the governor to research how we could dispel the problems in our banking sector. It is on the recommendation of this committee that we are allowing another option for people to pay back their loans and another opportunity for them to get out of debt.”

The finance minister gave assurances that only ‘honest loan defaulters’ would be allowed to use the option.

 “The borrowing in our banking sector is of two types – honest and dishonest. We are giving special opportunities to our honest loan defaulters.”

Strict measures will be taken to retrieve the money from ‘dishonest’ defaulters, or those who had intentionally defaulted on their loans, Kamal warned.

An audit committee would be formed to separate the ‘honest’ and ‘dishonest’ defaulters, he said.

Loan defaulters would be able to make use of this special opportunity if that committee recommended they be allowed to do so, he added.

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