Borrowers must withdraw pending court cases to qualify for incentives: BB
Applicants will also have to submit an affidavit declaring they have no pending cases against the government, Bangladesh Bank or the concerned bank.
Bangladesh Bank today (29 July) introduced a new condition for borrowers seeking government or central bank incentives, requiring them to withdraw any pending court case against the government, the central bank or the concerned bank.
The directive, issued through a circular that takes immediate effect, will apply to all existing and future incentive packages and policy support announced by the government or the central bank, including facilities for export-oriented industries, agriculture, and cottage, micro, small and medium enterprises.
Banks have been instructed to verify whether an applicant has any pending legal case before approving incentives or policy support.
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If a borrower has a pending writ petition or any other legal cases against the government, Bangladesh Bank or the concerned bank, the application can only be considered after the case is withdrawn, the circular stated.
Applicants must also submit an affidavit confirming they have no pending case against the government, Bangladesh Bank or the concerned bank. They will also have to provide a list of any cases they had previously filed and later withdrawn, it added.
In the circular, Bangladesh Bank mentioned that the measure is aimed at boosting private investment by expanding bank credit to productive sectors to support employment and sustainable economic growth.
The central bank also stated that it had found that some borrowers were receiving government incentives while simultaneously challenging decisions by the government, Bangladesh Bank or commercial banks in court.
The directive, issued under Section 45 of the Banking Companies Act, 1991, has been sent to the managing directors and chief executives of all scheduled banks.
