Bangladesh Banks' Wilful Defaulters List of 3,483 Owes Tk 290 Billion
Over a thousand individuals in Bangladesh have defaulted on credit card payments, with amounts ranging from Tk 10,000 to Tk 1 million. Despite this, the Bangladesh Bank has not shared the list of wilful defaulters with other state agencies as mandated by law.
The central bank has instructed other banks to pursue legal action for unresolved recovery issues. However, banks prefer negotiating with major clients instead of classifying them as wilful defaulters. This leniency extends to large-scale defaulters who owe billions, despite evidence of wilful default.
The Bangladesh Bank, responsible for receiving and processing the list of wilful defaulters, has not sent the list to the relevant government agency. This inaction comes amidst a surge in non-performing loans, which have risen to Tk 6,000 billion by June from Tk 4,200 billion in March. Experts suggest that the failure to make public and act on wilful defaulters' lists reflects governance lapses and a nexus between banks and politically connected borrowers.
Banks have prepared a list of 3,483 wilful loan defaulters who owe about Tk 290 billion in total. The law allows restrictions on defaulters' overseas travel, trade licence acquisition, business registration, property purchase, and government awards. However, the Bangladesh Bank's inaction in sharing the list with the relevant agency hinders the enforcement of these restrictions.
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