Bangladesh Bank is preparing to refund depositors of four financially troubled non-bank financial institutions Aviva, Fareast, FAS Finance and International Leasing as part of their liquidation process.

A separate refund scheme has reportedly been finalised and may be announced this week. Administrators have already been appointed to the four institutions.

Under the proposed scheme, individual depositors with up to Tk 1 million would receive their full deposits. Those with deposits of up to Tk 2 million may receive 90% in the first phase, while depositors with up to Tk 3 million may receive 85%. The refund rate would decline as deposit amounts increase.

The final scheme will specify when partial payments will be made and when the remaining amounts will be paid.

Bangladesh Bank spokesperson Arif Hossain Khan said the scheme is being prepared following a similar arrangement for depositors of five banks. Refunds will begin after government approval and the necessary funds are secured.

Institutional depositors are expected to receive payments after the liquidation process is completed and the institutions’ assets are assessed and sold.

Economist M K Mujeri stressed the need to complete the liquidation of weak and inefficient institutions alongside arrangements to refund depositors.