Bangladesh Bank Governor Dr. Ahsan H. Mansur stated that efforts are underway to restructure the loans of business owners impacted by the Corona pandemic, economic downturn, and political instability. He noted that numerous institutions have suffered significant losses due to these factors.

The Governor made these remarks while serving as a special guest at a dialogue titled ‘365 Days of the Interim Government,’ which was organized by the Center for Policy Dialogue (CPD) at a hotel in Gulshan, the capital, on Sunday (August 10).

He mentioned that Bangladesh Bank is approaching these institutions with a compassionate perspective. To date, over 1,200 applications have been submitted. Out of these, 250 have been addressed, while the remaining applications are still being processed. Each application is assessed individually, and the resolution involves collaboration among three parties – Bangladesh Bank, the lending commercial bank, and the applicant. There is no blanket approach to ensure that no one exploits the system to withdraw funds. Assistance is granted only after verifying the current status, potential solutions, and historical records of each institution.

Dr. Mansur announced that the duration for defaulted loans has been shortened from six months to three months. Initially, banks and entrepreneurs were resistant to this change, but they have since come to accept it. No bank will be permitted to distribute dividends to shareholders without maintaining the necessary provisions—this policy is being enforced for the first time. Banks that did not maintain 100 percent provisions or failed to meet the minimum capital requirement of 10 percent will not be able to pay dividends.

The Governor indicated that a significant amendment has been made to the Bangladesh Bank Ordinance of 1972, emphasizing that both robust leadership and a solid legal framework are crucial for a resilient financial sector. A strong institution cannot function effectively with weak leadership, and even with strong leadership, progress is unattainable without legal authority.

He further stated that the accountability and independence of Bangladesh Bank need to be enhanced by eliminating political interference and bureaucratic hurdles. Steps must be taken to avert the political corruption that has plagued the past in the future.