Actual defaulted loans are more

Says Ahsan H. Mansoor

Staff Correspondent: Policy Research Institute (PRI) executive director and prominent economist Ahsan H. Mansoor said that the actual non-performing loans of the country’s banking sector are more than the published accounts.
Basically, Bangladesh Bank has to write off various categories of loans including foreclosure while complying with the conditions of IMF. But these are also defaulters. The true picture of defaulted loans in the country’s banking sector is slowly emerging.
If the IMF’s conditions are met properly, the defaulted loans will increase further. Because, the definition of defaulted loans of the country’s bank sector is not yet of international standard. The IMF has called for this definition to be an international standard. Then the debtors will not get the extra time they are getting now. Then the defaulted loans will increase.
Advising to think seriously about the banking sector, Ahsan Mansoor said, money is not available from the banking sector.
The government is not getting money, neither are the businessmen. Why not getting? Who is responsible for this situation? Ahsan Mansoor said that there was an attempt to merge banks, but it fell flat under the pressure of political economy.