Pre-suit mediation for defaulted loan settlements likely in budget
Out-of-court settlement processes will be encouraged to expedite the resolution of disputes involving defaulted loans.
The government is likely to announce a new initiative in the upcoming national budget to introduce a "pre-suit mediation" system, aiming to resolve loan defaults before banks take legal action.
According to the government's plan, out-of-court settlement processes will be encouraged to expedite the resolution of disputes involving defaulted loans.
Finance Minister Amir Khosru Mahmud Chowdhury is set to unveil his maiden national budget in parliament this afternoon (11 June). The proposed budget is expected to have a total outlay of Tk9.38 lakh crore, making it the largest national budget in Bangladesh's history.
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The pre-suit mediation initiative is expected to bypass lengthy legal processes, fast-track loan recovery, and alleviate the growing pressure on the country's financial sector.
