Government is going to take steps to write off the default loans. However Finance Minister AHM Mostofa Kamal said that who will be defaulter deliberately government will take tough measures against them.
On Sunday(April28)in the question-answer session of the 11th parliament, Minister Mostofa Kamal told this while giving reply to a supplementary question from Gonoforum parliament member Mokabbir Khan.
Finance Minister said that there is a culture of write off the default loans throughout the whole world. In our country there was no alternate dispute law. So there was no way out if any body once entered the bank. So we are going to make tolerable situation for the defaulters.
He said that it is definite that if the banks are burdened with default loans then the banking sector cannot run normally. Again the size of non performing loan(NFL) increases then the bank loses from dynamism. Considering all these factors we will reduce the ‘rate of interest’. If the rate of interest is not reduced then the size of NFL will not reduce.
Speaking on the causes of NFL the Minister said that the NFL increases when the borrowers fail to repay the loans. The rate of interest of the NFL is very high. When the business establishments, mills and factories do not run normally the NFL increases in usual process. Keeping the NFL on the bank sheets it looks very bad so we have decided to clear the bank sheets by write off the loans. So the rate of interest will be brought down at a tolerable rate. If we can do that then we will be successful. Our employment opportunities will increase and our mills and factories will be saved, the Minister said.
We are going to do that in the interest of all. Meanwhile there are many debates on it through making various opinions. We are doing that because there is a culture. In our country there was no system to write off loans. Moreover in our country there were laws of insolvency and bank arbitration but not working. So if any one once entered the bank he could not come out. We will make the law functioning and will create equitable situation through the process of write off the default loans. But we are to take actions against the deliberate defaulters, the Minister said.