Home ›› 20 Jul 2022 ›› Front
The visiting International Monetary Fund (IMF) delegation has expressed satisfaction when the Bangladesh Bank explained the increase in default loans and the changes made to the loan classification definition.
The reaction came at a meeting between the IMF delegation and high officials of the central bank in Dhaka, a top official of the latter told The Business Post on Tuesday.
The official, who attended the meeting, said the multilateral lender was informed that default loans had increased as the situation at home and abroad was not normal due to various reasons, including Covid-19, floods, and the Russia-Ukraine war.
The IMF officials were satisfied with the explanation and raised no objections, he added.
The central bank data shows default loans increased by Tk 10,000 crore between March this year and December 2021 and stood at Tk 1,13,440 crore, which was 8.53 per cent of the total outstanding loans.
During the meeting, the Bangladesh Bank told the IMF officials small and medium businesses would have been in trouble and the overall economy would subsequently have faced additional pressure if the loan classification definition was not changed.
The central bank also argued that loan rescheduling facilities had been extended because of the overall domestic and global economic turmoil.
“This may be changed in future depending on how the facilities are used,” the central bank official told The Business Post.
