Four sons of former Expatriate Welfare and Overseas Employment Minister Nurul Islam BSc have been barred from leaving the country. This order was given in the case of defaulted loan of Tk. 30 crore of private Uttara Bank.

Judge Mujahidur Rahman of the Chattogram Artha Rin Adalat passed this order on Sunday (May 12).

Those four are Mujibur Rahman, Zahidul Islam, Kamrul Islam and Wahidul Islam sons of Nurul Islam BSc.

Mujibur Rahman is the managing director of Sanowara Dairy Foods Limited owned by the former minister. The other three are directors of the same organization.

According to the information mentioned in the case, a loan of Tk. 20 crore 72 lakh 46 thousand 707 was taken from Uttara Bank in the name of two institutions.

Out of this, a loan of Tk. 17 crore 90 lakh 59 thousand 139 taka was taken in the name of Sanwara Dairy Foods Limited and Tk. 2 crore 81 lakh 87 thousand 567 taka of Unilac Sanwara BD Limited.

But, against this no property has been mortgaged in the bank. The bank sanctioned this loan on the basis of personal guarantee and trust receipt of the defendants.

The interest charged as a loan repayable in due time was Tk. 1 crore 67 lakh 63 thousand 117. Total balance including interest is Tk. 22 crore 40 lakh 9 thousand 824 taka.

Banks offer rescheduling after default. Even then, due to non-payment of the loan, another Tk. 8 crore 13 lakh 40 thousand 624 was charged.

As a result, the total claim of the bank till October 31, 2023, i.e. the amount of defaulted loans between the two institutions stands at Tk. 30 crore 53 lakh 50 thousand 449 taka 39 paisa.

Confirming the order, the assistant bench of the court Rezaul Karim said that the court has barred the four sons of the former minister from leaving the country in view of the application in the case of loan default of Tk. 30 crore by Uttara Bank. Apart from this, the court has directed Dhaka's Special Superintendent of Police (Immigration) to take necessary measures in this regard.

Earlier, on November 6, 2023, ASM Faizul Alam Chowdhury, principal officer of Uttara Bank's Agrabad branch, filed a case in court as a plaintiff.

Two organizations were made defendants. Apart from this, Nurul Islam BSc and his wife Sanwara Begum and their five sons are also defendants.

Meanwhile, the plaintiff told the court on May 2 that since the filing of the case, no other defendant has appeared in the court except one. No initiative has been taken to repay the loan. Rather, the plaintiff came to know that they were preparing to leave the country.

For that reason, the plaintiff requested to seize the defendant's passport and prohibit them from leaving the country.

Education Minister Mahibul Hasan Chowdhury has expressed hope that schools, colleges, madrasas and technical educational institutions under the Ministry of Education will be closed on Saturday after next Eid-ul-Azha. The minister said this in response to a question on Sunday (May 12) at the SSC and equivalent examination result release ceremony at the secretariat.

It should be noted that classes are being held in educational institutions on Saturdays from last May 4 to make up for the closure due to heat wave.

When asked whether schools will be open on Saturdays in the future, the Education Minister said, "A decision will be taken on this matter in phases." Schools were also closed on Saturdays, keeping in mind that students would get a fixed time for homework. There were many other things. As we have not got nine working days, we are trying to get those working days by making an arrangement for now.'

The minister said, "But this is not a permanent decision. We are discussing with NCTB, also with directorate offices. Teachers need rest, students need rest too. It is also necessary to see whether the students are doing their homework properly, whether they are getting enough time for it.

The education minister also said, 'I will achieve more learning results by teaching in the classroom with excessive pressure, but that are not the point. It is a temporary thing. We are hoping that we may not have to continue this (Saturday class) after next Eid-ul-Azha. We will do that considering the situation. 

Due to the devaluation of the taka against the dollar, the foreign debt has increased by more than 3500 crore takas in a single day. Compared to December 2022, foreign debt increased by 420 crore dollars last March.

Before the devaluation of the taka last Thursday, the value of the dollar was Tk. 46 thousand 200 crores as the price of the dollar was 110 taka. Debt has increased to 49 thousand 560 crores from last Thursday as 118 takas. Due to the devaluation of taka, the debt has increased by Tk. 3 thousand 360 crores during the discussion period.

Along with this, the interest rate in the international market increases and the additional money has to be paid about Tk. 200 crores. If you add the interest money, the total amount is more than Tk. 3.5 thousand crore.

According to sources, the entrepreneur conducts business activities by taking loans in foreign currency and converting it into local currency. Local currency has to be converted into foreign currency while repaying the loan. At that time, foreign currency has to be bought at the prevailing dollar price in the market. Due to this, if the price of the dollar increases, the foreign debt increases in terms of taka.

Among these, if the interest rate increases in the international market, the loan amount also increases. Because, at the time of repayment of the loan, the prevailing exchange rate and interest rate are the conditions for repayment of the loan. If there is more short-term debt among them, the risk of debt increases more. Short-term loans are high in the private sector in Bangladesh. Due to this, the debt repayment pressure is also high. In this, the country's foreign exchange reserves are on the downward trend.

At the same time, the price of the dollar is increasing. At present the net reserve is 1848 crore dollars. In August 2021, it rose to the highest gross reserve of 4608 crore dollars.

According to the Central Bank report, the total foreign debt in December 2022 was 9,652 crore dollars. At that time the price of dollar was 103 taka. The loan amount was Tk. 9 lakh 94 thousand 156 crores. Last December, the amount of debt increased to 10,640 crore dollars. At that time the price of dollar was 110 taka. In this, the loan amount stands at Tk. 11 lakh 7 thousand crores.

Debt increased by 4.12 billion dollars during the discussion period. Last March, it further increased the debt status to 10,720 million dollars. As a result, the debt increased by 4.2 billion dollars from January to March 2023. The highest price of the dollar was Tk 110 from last December till Wednesday. According to this, the debt has increased by 46 thousand 200 crores.

The price of the dollar increased to 118 taka from last Thursday. The debt increased to Tk. 49 thousand 560 crores in one day. Due to the increase in dollar value, the amount of loan has increased by Tk. 3 thousand 360 crore.

Meanwhile, the interest rate of loans in the international market has also increased. Before Corona, the average interest rate for six-month Treasury bills in dollars at the London Interbank Offer Rate (LIBOR) was 1.5 to 2 percent. With this, 2.5 to 3 percent was added to the loan interest. According to this, the interest rate was 4 to 5 percent.

At present, the LIBOR rate has increased to 5.71 percent in dollars and the US Secured Overnight Finance Rate (SOFR) has risen to 5.38 percent. If you add two and a half percent to this, the interest rate stands at 8.21 percent in dollars. Adding three percent makes the interest rate even higher. As a result, the loan interest rate is increasing. Due to this, the debt situation is increasing.

Apart from this, as a result of increasing the loan repayment period, additional interest has to be paid as well as penalty interest. In case of failure to pay the installments of the loan in the international arena, high interest along with penalty interest has to be paid against it.

Last year, interest payments on short-term loans were 93 crore dollars. Tk. 10 thousand 130 crore as dollar price is 110 taka. 113 crore dollars to be paid this year. Of this, 500 million has already been paid. Another 63 million dollars will have to be paid. As of now, the price of dollars is 110 taka as 6930 crore taka. 7434 crores as Tk.118. Tk. 504 crores to be paid more.

Since the time of Corona, due to the business slowdown, the repayment period of loan installments has been extended in stages. As a result, the amount of debt has also increased. Despite the increase in loan repayments, the debt status has now increased again, although it decreased slightly in March last year.

In December 2022, the external debt of the public sector was 7 thousand 221 crore dollars. Last March it increased to 7981 crore dollars. 7.6 crore dollars increased. As the dollar price is 110 taka, the loan amount is 83 thousand 600 crore taka. As of 118 taka, its amount has increased to 89 thousand 680 crore taka. Due to the devaluation of the taka, the debt in this sector is increasing by Tk. 6 thousand 80 crores.

Most of the public sector debt is long-term. Due to which they have a long repayment period. The level of risk is low. But short term loans are more in the private sector. These are to be repaid within 3 to 6 months. Interest rates are also high. That is why the risk is high for them. Most of these loans are deferred. At the same time paying more.

The external debt position of the private sector was 2,431 crore dollars as of December 2022. Last March it decreased to 2095 crore dollars. Debt decreased by 336 crore dollars during the period under discussion. As the dollar price is 110 taka, the debt has decreased to 36 thousand 960 crore taka. 118 has decreased to 39 thousand 648 crores. Due to the devaluation of the rupee, the level of debt reduction has increased by Tk. 2 thousand 688 crores.

Among the loans of the private sector, the loan of the import sector is the largest. In this, trade credit and foreign LC liabilities are increasing which is causing pressure on the country's foreign exchange reserves.

Debt in other sectors was 11.42 crore in December 2022. Last March it further increased to 11.78 crore dollars. Debt increased by 36 crore dollars. As the dollar price is 110 taka, the debt has increased to 3960 crore taka. 118 increased to Tk. 4249 crore. Debt increased by Tk. 288 crore due to devaluation of taka.

The Ministry of Industries will direct the District Administrators to construct temporary 'sheds' to store raw leather outside Dhaka to prevent leather prices from falling and smuggling during Eid ul-Azha.

The decision was taken in the seventh meeting of the 'task force formed with the aim of making recommendations and working plans for the development of the leather industry' on Sunday (May 12) at the conference room of the Ministry of Industries in Motijheel.

Bangladesh Small and Cottage Industries Corporation-BSIC will oversee this work on behalf of the Ministry of Industry. DO letters will be issued to Deputy Commissioners to construct temporary depots at strategic locations for local collection of leather and preservation with adequate salt.

At the end of the meeting, Industry Minister Nurul Majid Mahmud Humayun told the reporters, 'Preservation facilities should be increased in the leather industry sector, so that leather does not get damaged. Steps are being taken to ensure that leather traders/wholesalers do not face major problems and get loans on easy terms.

Raw hides worth crores of takas are wasted every year due to lack of preservation alone. It is alleged that tanneries and seasonal traders reduce the price of leather during Eid on this occasion.

If leather is temporarily stored, the supply in Dhaka will not increase at the same time. The task force believes that tanneries and wholesalers will not face a financial crisis.

After a few years of fall in the price of rawhide during the Eid ul Azha period, there was no dissatisfaction with the price of hides at the level of buyers and sellers last year.

Last year, during Eid ul-Azha, the price of leather in the biggest rawhide store in the capital went up to Tk. 1,050 each, compared to Tk. 800 in the previous year. At the retail stage, leather is sold to the tannery from the postmen, passing through the wholesalers.

Last year, the government fixed the price of salted cowhide in Dhaka at Tk. 50 to Tk. 55 per square foot for tannery traders, the previous year the price was Tk. 47 to Tk. 52.

Besides, the price of salted cowhide outside Dhaka was fixed at Tk. 45 to Tk. 48 per square foot, compared to Tk. 40 to Tk. 44 in the previous year.

Apart from this, the government fixed the price of salted goat skin at Tk. 18 to Tk. 20 per square foot and goat skin at Tk. 12 to Tk. 14 per square foot as before.

Fisheries and Livestock Minister Abdur Rahman said that 1 crore 3o lakh animals will be supplied for sale in the country during the upcoming Eid al-Azha. According to the data of the Ministry of Livestock, last year this number was 1 crore 25 lakh, of which 19 lakh animals were returned unsold in various markets.

The Minister of Industry said, "The Ministry of Industry will cooperate with the businessmen of the leather sector. We need their cooperation, we will do it.

In the case of solid waste management during Eid ul-Azha, the previous situation is no more. Nurul Majid said that there has been a lot of improvement in this regard, "short and long term actions have been determined for the development of the leather industry." All kinds of support will be provided for the implementation of these actions along with policy cooperation from the Ministry of BSIC and Industry.

The agenda of the meeting included pricing of sacrificial skins and proper skinning, advertisement for collection and preservation, local procurement of skins and construction of temporary storage facilities at strategic locations for preservation of skins with adequate salt, prevention of smuggling of sacrificial animal skins and decision making on collection of skins.

In the meeting, the Ministry of Home Affairs was given the responsibility to take necessary measures to ensure that no rumors are spread in the media, including social media, and those animals from abroad are not brought into the country illegally.

Bangladesh Tanners Association (BTA) president Shaheen Ahmed told reporters after the meeting, "We have talked about giving loans on easy terms. If CETP is fully approved, many of our companies will be able to get prices for exporting leather at the international level. Many organizations have already achieved all other compliances.

It was decided in the meeting that BSIC will provide free salt to the orphanages to preserve the sacrificial hide. As in the past, this time too, the hide outside the capital will not enter Dhaka for seven days after Eid ul-Azha.

Rajdhani Unnayan Kortipakkha (RAJUK) has been directed to give speedy design approval for construction of buildings on unused tannery industrial sites in Hazaribagh.

Prime Minister's Private Industry and Investment Adviser Salman F Rahman, State Minister for Commerce Ahsanul Islam Titu, Senior Secretary of the Ministry of Industry Zakia Sultana and members of the task force participated in the meeting.