Intersts waiver on default loans BANGLADESH BANK recommends committee to as its companies

Bangladesh Bank has advised the finance ministry to form a committee
to assist the companies, which were financially affected during the
rule of the past BNP-led four party alliance government and the
military-backed caretaker administration, official sources said.
The finance ministry in last month sought the central bank's advice
on an application for waiving all interests on default loans and
moratorium on their down payments by the companies like the Globe
Janakantha Shilpa Paribar. The Janakantha Shilpa Paribar applied
to the finance ministry for waiving all interests on their default
loans and moratorium on the down payments as they had financially
suffered for the policies of the last two successive
administrations, finance ministry sources said. The BB sent a
letter to the finance ministry on Thursday suggesting that the
problem of Janaknantha should not be considered as an isolated case,
it should rather be dealt in a comprehensive manner. The central
bank also suggested the government to form a committee which would
provide recommendations on the matter after proper scrutiny to
resolve the problem of the affected companies. Usually, the
concerned commercial banks take the decision on waiver of interest on
default loans and moratorium on their down payments basing on the
bank-client relationship. The BB cannot give advice or directive to
the banks in this regard. The central bank has already sent to the
concerned commercial banks the applications of the loan defaulters
who were affected during the tenure of the past four-party alliance
government and the caretaker administration. As per the BB report
as of March 30 last, the amount of default loans of the Janakantha
Limited stood at Tk 17.12 crore.