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A loan-recovery support committee has so far verified 20 applications of big defaulters of loan ranging from Tk3.0 billion to Tk 80 billion to facilitate recovery of the credits, as the interim government has launched a financial-cleanup drive.
Officials said Saturday the panel had reviewed the accumulated problematic and non-performing loans (NPLs) taken from different commercial banks and financial institutions in its last couple of meetings.
Some of the big defaulters have already applied for settlement of their classified loans for continuing their business operations, sources told The Financial Express.
They named Beximco Group, Desh Bandhu Group, Gazi Group, Aman Feed, Energy Pack, Zahintex, Amazing Fashion, and HKG Steel among the applicants.
"We have already scrutinised some 20 applications of the companies with problematic loans or NPLs. In the next meeting, we will also review some other applications of the defaulters," said a committee member.
He said nearly 50 companies, who defaulted on repayment of loans worth billions of takas, had already applied directly or through their commercial banks to the committee for getting settlement of their classified loans.
"We have discussed nearly 50 applications of the loan-default companies which seek to settle their loans in our last 3-4 meetings," said another member of the committee.
The borrowers as well as banks and non-banking financial institutions (NBFIs) were present at the meeting, he added.
The central bank, Bangladesh Bank (BB), formed the 'selection committee for policy support to restructure businesses and financial management' on January 30 that sat with the international and national private commercial banks' officials in mid-February.
The committee would review whether the applicants with big NPLs or classified loans are willful or non-willful defaulters.
"We have reviewed at least 20 proposals of the default-loan holders who have applied for relaxing terms and conditions for paying back the loans," Mamun Rashid, a member of the committee and a former banker, told The Financial Express.
He said: "We would also review other proposals, so far available to us, in the next meetings. We are trying to find out whether the companies became defaulters willfully or non-willfully. Besides, we are also reviewing the existing rules and regulations of the banks."
Another committee member told the FE that they would select those defaulters which had not got their loans rescheduled more than thrice. And those companies might be eligible for the servicing of their outstanding loans on relaxed terms and conditions.
The BB-formed independent panel has also requested each of the commercial banks and NBFIs to identify non-willful defaulters whose businesses had been affected for multiple reasons, including Covid-19 pandemic, the Russia-Ukraine war, energy prices, US dollar shortages, and the July-August 2024 mass uprising.
The five-member committee will list out non-willful defaulters who have loans of Tk 500 million or above with various commercial banks.
The committee member notes since many banks are in a shambles due to the financial crisis, the previous loan- rescheduling system, and some other reasons, some of them are not willing at this moment to give any more opportunity to the affected businesses.
"We will actually go with the bank-led model. We will not force them beyond the national and international practices. We will scrutinise some international models used in Indonesia, Thailand, Sri Lanka, India and the Philippines. Then we will request the banks to give some respite to the affected businesses," he explains.
Mamun Rashid mentions that many businesses that contribute to the industrial sector, for example by generating employment, and were affected due to any of the five reasons should get opportunities to continue their operations with the support of their respective banks.
"So, we are hopeful the banks will come forward to help us select the non-willful defaulters and give them respite," he said, adding that some of the affected businesses had already applied to the committee for such clemency.
"But we have suggested they go to their respective banks. The banks will provide us with their information. Then we will scrutinise and recommend names for the support," the former banker said.
"The businesses that have already been given rescheduling opportunities thrice will not be allowed to get any more."
The committee will select the industries and entities which have been badly affected by reasons beyond their control before providing policy support for their revival.
The post-uprising government took punitive actions against businesses at fault, like management changes and account freezing.
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