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micro-credit institutions due to an embargo imposed on recovery of
agricultural and micro-credit money disbursed in the Aila-hit areas of the
country's southern districts. 'The NGOs that disbursed loans in the
areas will face closure if they are to suspend loan recovery for one year,'
Foundation chairman Dr Muhammad Ibrahim told Finance Minister AMA Muhith
at a meeting at the Finance Ministry Wednesday. Recently, the
Microcredit Regulatory Authority slapped the restriction suspending loan
recovery by the NGOs for one year from June 28 this year and asked for
rescheduling the unrealized and default loans for next one year as the
cyclone last May hit hard life and livelihood of people in the coastal
belt. It also asked the micro-credit institutions to lend fresh credits
to their members after rescheduling the previous loans and instructed
taking measures so the borrowers do not face any harassment in fresh
borrowing. 'We'll have to look into it as they raised the concern,'
Muhith told reporters after the meeting, adding that the decision in this
regard would be taken in consultation with the authorities concerned.
Dr Ibrahim apprehended that the suspension of loan recovery would
affect financial discipline of the micro-credit institutions and
requested the minister to put off the recovery on case-to-case basis.
NGO Foundation, the federation of NGOs in Bangladesh, also aired
concern over the initiative for establishing NGO Commission as the
government did not yet discuss with them the possible framework of the
proposed watchdog body. They also urged the Finance Minister to set the
criteria for NGOs which would be engaged in implementing government
programmes.
