Why cenbank's special rescheduling package fails to fix default loan problems
Even though Bangladesh Bank has repeatedly given the opportunity to reschedule loans, the problem of defaulted loans is not decreasing. On the contrary, giving long periods and grace periods to major defaulters has created a fear of losing the discipline of loan repayment in the banking sector. Although defaulted loans may appear to be temporarily lower due to rescheduling, the real problem remains. Now the main challenge is to recover loans and ensure good governance in the banking sector instead of repeatedly extending the time.
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