No rise in default loan from now on, says finance minister

New Finance Minister AHM Mustafa Kamal on Thursday announced that there will be no rise in default loan from now on and it will be reduced gradually.
He came up with the announcement after a meeting with the leaders of Bangladesh Association of Bankers (BAB) at his office.“We reached a consensus that our main concern is non-performing loan. This is your and our concern as well as of the nation,” the finance minister said.
He, however, said the rate of non-performing loans in the country is 11-12 percent which is much lower than many other countries. “The rate of non-performing loans in our neighbouring country India is also much higher than that of ours. The non-performing loans are still manageable,” he said.
Mustafa Kamal also said there will be a cut in the interest rate if the non-performing loans decrease. “So, it (loan) can in no way be allowed to increase.”He said the Bangladesh Association of Bankers will provide information on loan defaulters, amount of their loans, interest and capitals. “We’ll verify and evaluate those and then go for actions.”
The finance minister said the BAB leaders assured him of taking steps to decease the default loan.Replying to a query, he said all the businessmen in the country are influential people as around the world. “They account for 82 percent of the economy. Country’s economy can’t be decorated with the rest 18 percent people leaving out the businesspeople. This is an unrealistic thinking. The businessmen will be provided with all kinds of privileges without loan defaulting.”
BAB President Nazrul Islam Majumder, IFIC Bank Chairman Salman F Rahman, Premier Bank Chairman HBM Iqbal and owners of other banks were present at the meeting.

source: UNB