“White Paper on State of the Bangladesh Economy” reveals various aspects of economic mismanagement of ousted prime minister Sheikh Hasina led government.
According to the committee responsible for the white paper, the recruiting agencies have transacted amount equivalent to the cost of four Metrorail constructions.
The information came to light on Sunday during the report handover program at chief adviser’s Tejgaon office. The 12-member committee led by renowned economist Dr Debapriya Bhattacharya placed the report to the chief adviser Dr Muhammad Yunus and it was revealed to media on the following day.
“The recruiting agencies have transacted via illegal channel 13.4 lakh crore taka for visas in the last 10 years that is equivalent to the construction cost of four MRT6 projects, the report said, adding: “Due to syndicates and this exploitative recruitment, migrant workers have been deprived of fair employment, resulting in a decrease in the amount of remittances.”
The report continued: “The continuous loan defaults and high-profile scandals have destroyed financial stability and diverted the capital away from productive sectors.”
The committee report says: “During the previous government, political influences were evident in loan approval that deepened the crisis in the banking sector. The amount of bad or distressed loans during this period is equivalent to the cost of constructing 14 Metrorail Projects, or 24 Padma Bridge Projects.”
There have been incidents such as taking out loans anonymously, laundering money, and changing the ownership of banks at gunpoint. Hence, the good governance and best practice in the banking has dropped to zero, and now the whole country, including the banking sector is paying price for this.
During the report handover program, Bangladesh Bank governor said they are checking the “health” of financial sectors of the country.
He fears that the defaulted loan will increase by 12.5 to 17.5 percent in coming days, making defaulted 25-30 percent defaulted loan. He said: “It will reach 15 percent in the next month, then 17 percent, and gradually will reach to 30 percent.”
He added that the loans were sanctioned during the previous government, and now these amounts are coming to account. The defaults have already occurred.
He said: “We have started working to reduce it.”
He said: “S Alam, Saifuzzaman Chowdhury and some other business groups and businessmen are responsible for the half of the total defaulted loan- Tk2.5 lakh crore. After 2-17, these loans are sanctioned and the money laundered abroad.”
Finance adviser Salehuddin Ahmed, Principal Secretary Sirajuddin Sathi,
Principal Secretary Sirajuddin Sathi, and others were present among others during the handover of the white paper.
Translated by Afsar Munn
