Default loans fall for relaxed rules
Finance minister says
The amount of default loans in the banking sector decreased after the relaxation of rules and regulations by Bangladesh Bank, Finance Minister AHM Mustafa Kamal said yesterday.
Non-performing loans (NPLs) decreased by Tk 17,737 crore in one year as of September 2020, he said in response to a query in parliament.
The outstanding classified loans stood at Tk 94,440.47 crore as of September last year, according to data from the banking watchdog.
"The central bank has relaxed several policies on loan classifications, helping reduce default loans," Kamal said.
In 2019, a relaxed rescheduling facility was offered to defaulters, allowing them to regularise NPLs by way of giving 2 per cent down payment, which decreased classified loans in banks.
"In addition, the central bank also declared a loan moratorium throughout last year to tackle the economic situation stemming from the coronavirus pandemic," Kamal added.
Banks have also been asked to form monitoring cells in order to recover NPLs from top defaulters that have NPLs worth over Tk 100 crore.
Four mobile operators owe the government over Tk 13,000 crore in arrears as audit objections, 3G spectrum use as well as High Court settled amounts, Posts and Telecom Minister Mustafa Jabbar said.
Grameenphone owes Tk 10,580 crore as audit objection while Robi Axiata owes Tk 729 crore for the same reason.
Pacific Bangladesh Telecom owes Tk 128 crore as a High Court settled amount and Teletalk Bangladesh owes Tk 1,585 crore due to 3G spectrum use, he added.