Cenbank takes 18-month action plan to cut soaring NPLs
The governor said nearly 20 million depositors had been affected by various irregularities during the tenure of the previous government.
Bangladesh Bank Governor Md Mostaqur Rahman today (6 August) announced an 18-month action plan to reduce non-performing loans (NPLs) and restore discipline in the banking sector.
Speaking as the chief guest at a seminar on Bangla QR Code organised by the Accounting Department of Dhaka University, he said around 36% of the total loans in Bangladesh's banking sector are now non-performing, posing a serious threat to the financial sector.
The governor said nearly 20 million depositors had been affected by various irregularities during the tenure of the previous government, stressing that there is no alternative to taking strict measures to normalise banking operations.
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Outlining the plan, Mostaqur said defaulting borrowers would be offered an exit facility through the bullet payment method during the first six months. The remaining 12 months would focus on recovering defaulted loans under the proposed Distressed Asset Management Act and the Artha Rin Adalat Act, which he said could be passed in parliament in September.
"The message to defaulters is clear. Decisions will be finalised within six months in accordance with the law. The days of dragging cases on for years are over," he said.
