Withdraw embargo on loan-recovery
The NGO Foundation expressed concern about the survival of the micro-credit institutions (MCIs) due to an embargo imposed on recovery of agricultural and micro-credit money disbursed in the Aila-hit areas in southern districts of the country.
“The NGOs that disbursed loans in the areas will face closure if they are to suspend loan recovery for one year,” Foundation Chairman Dr Muhammad Ibrahim told Finance Minister AMA Muhith at a meeting at the finance ministry yesterday.
Recently, the Microcredit Regulatory Authority slapped the restriction suspending loan recovery by the NGOs for one year from June 28 this year and asked for rescheduling the unrealised and default loans for next one year as the cyclone last May hit hard life and livelihood of people in the coastal belt.
It also asked the micro-credit institutions to lend fresh credits to their members after rescheduling the previous loans and instructed taking measures so the borrowers do not face any harassment in fresh borrowing.
“We'll have to look into it as they raised the concern,” Muhith told reporters after the meeting, adding that the decision in this regard would be taken in consultation with the authorities concerned.
Dr Ibrahim apprehended that the suspension of loan recovery would affect financial discipline of the micro-credit institutions and requested the minister to put off the recovery on case-to-case basis.
NGO Foundation, the federation of NGOs in Bangladesh, also aired concern over the initiative for establishing NGO Commission, as the government did not yet discuss with them the possible framework of the proposed watchdog body.
They also urged the finance minister to set the criteria for NGOs which would be engaged in implementing government programmes.
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