defaulted loans keep piling up

According to Bangladesh Bank records, at the end of December 2022, defaulted loans in the banking sector stood at over Tk 1.2 trillion (120,657 crore), which is 8.16 percent of total disbursed loans.

In December 2021, the amount of defaulted loans was a little over 1 trillion taka (103,274 crores); And it was 7.93 per cent of the loans disbursed.

As per the records, the defaulted loans in the banking sector increased by more than 170 billion taka (170,383 crore) within just one year.

If rescheduled and restructured loans etc. are counted, the amount of defaulted loans would be much higher. If IMF figures are to be followed, the defaulted loans reach almost 3 billion (Rs 300,000 crore).

One of the key conditions for Bangladesh to receive the $4.7 billion loan approved by the IMF last January was to reduce the rate of defaulted loans in the banking sector.

While an IMF delegation has recently inquired about the progress in the matter, the government has delayed it by making some vague promises. Barring one or two, the condition of all public sector banks is critical.

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