The Bangladesh Bank has decided to provide various policy supports to sick business firms which are under the burden of huge default loans, to revive such business again.
The central bank formed a five-member committee in this regard which included regulatory bodies, economist and businessmen, according to a BB press statement issued on Thursday.
The committee has been tasked with examining whether borrowers have genuinely been affected by reasons beyond their control such as the Covid-19 pandemic, the Russia-Ukraine war, global financial downturns, natural disasters, and political turmoil.
The committee in additionally will assess if the troubled institutions can be brought back into business through restructuring and necessary policy support.
The committee members include Mezbah Ul Haque, executive director of the off-site supervision department of the central bank, who serves as the convenor, Mohammad Shahriar Siddiqui, director of banking regulation and policy department (member secretary), Delwar Hossain, a joint secretary of the financial institutions division, economist Mamun Rashid and Abdul Haque, a business representative from Haq鈥檚 Bay.
The central bank in the press release said that the committee will focus on loans amounting to Tk聽50 crore.
It will see whether such companies became defaulted for deliberately or not.
There is no fixed time limit for the committee to complete its task. However, the members are entitled to receive remuneration for a maximum of two meetings per month.
The initiative is part of the central bank鈥檚 broader efforts to stabilise the banking sector and support economic recovery amid various domestic and global challenges.
