Cenbank to reconstitute boards of all S Alam controlled banks within a week: Governor
The central bank will reconstitute the boards of the banks under the control of S Alam within a week, Bangladesh Bank Governor Ahsan H Mansoor said today (27 August).
In a meeting with a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the governor also assured to remove the LC restrictions imposed on the banks after reconstitution of the boards, officials present at the meeting told The Business Standard.
A week ago, Bangladesh Bank imposed lending limits and stopped the LC operations of six banks under the control of S Alam Group. The banks are Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
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Import and export activities of businesses associated with these banks were halted.
After the meeting, BGMEA's Senior Vice-President Abdullah Hil Rakib told reporters, "Bangladesh Bank has agreed to launch a soft loan package of Tk3,000 crore. In addition, loans from the Export Development Fund (EDF) will continue."
The governor has also assured to solve the LC issues of the six banks quickly, he added.
As of today, boards of Islami Bank, Social Islami Bank, Union Bank and Global Islami Bank have been reconstituted.
