Bangladesh Bank spokesperson Husne Ara Shikha said information on defaulted loans was hidden in previous government’s regime, now efforts are being made to reveal it.
It is said that the defaulted loans are worth 4 lakh crore taka or more. But she believes that if the total information comes to light, the actual amount of defaulted loans could exceed 6 lakh crore.
Banks are being audited and after getting information on actual defaults, steps to reduce them will be announced.
Shikha, executive director of the central bank, made these statements on Tuesday while addressing media at a press conference.
The spokesperson said: “In the last five months, the central bank has taken several initiatives to control issues including forex market, inflation. These initiatives include restructuring the boards of commercial banks, formation of banking taskforce.”
Mention that the financial sectors have not yet fully stabilized, she said: “In the meantime we received some benefits from these initiatives, and some results will take more time to come.”
“The financial panics have been subsided.”
In response to a question, the spokesperson said: “By the end of 2025, it will be clear how much money has been laundered through which bank to which country. Bringing back laundered money is a time-consuming process. The designated agencies are working on the matter. They are not sharing this information with us for security purpose.”
Being asked about inflation, she said: “We have already increased the policy interest rate several times to control inflation.”
She is hopeful that the inflation will come down in January. “If the inflation is not decreased, the policy interest rate may be increased again” she said.
Industrialists are unhappy as they have to pay additional interests on bank loans. Investment also slows down.
She said: “Interest rates are not the only factor responsible for the decline in investment. Many other things, including infrastructure development, energy supply, and communication systems, are related to this.”
Therefore, it is not possible to completely reduce inflation with the sole efforts of the central bank, she said, adding: “Other institutions along with central bank need to work properly to curb inflation and other financial issues.”
Translated by Afsar Munna
