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Dhaka: Private Association of Bank Owners President of the Bangladesh Bank Association (BAB). Nazrul Islam Majumder said that bank interests should be waived if the Prime Minister gives instructions. At the same time, he said that there is no possibility of defrauding the money announced by the Prime Minister.
In an interview with banglanews, the president of Exim Bank and BAB expressed his views on the general problems, including the role of the banking sector in saving trade and commerce that has stagnated in Bangladesh due to Covid-19 in course in the world.
Bangladesh: To compensate for the losses suffered by companies and industries during the ongoing blockade, several businessmen and commercial organizations emphasize giving up interest on bank loans. Prime Minister Sheikh Hasina has already given a positive signal in this regard. What is your statement about it?
Nazrul Islam Majumder: Covid-19 has suffered significant damage. But how to forgive the interest on the loan! Whose money? Money belongs to people. Most of the money belongs to the people. 30-40 percent of sponsored shareholders. The remaining 60-70 percent are ordinary shareholders. And about 80 percent of the money belongs to the people. They have saved the money in exchange for profit, so no! If we forgive the interest, how can we pay the interest on the deposit? Then the staff salaries. House rental. How to pay other expenses? We also do business. If this is done, the bank will declare bankruptcy. This claim is not justified. I do business.I also had to take loans from 10-12 banks, but in a special case it could be. If a person dies, a fire burns everything, a disaster destroys everything, then it can happen. I am an entrepreneur and director of a bank. How do we do that? But we will if the Prime Minister gives instructions. The government must be thinking of something else. The government can subsidize. Then we can give up interest. As the British government says, they will be rescued. That is the process. Another may be that the amount of interest we will give up is possible if the government gives us (the banks) an incentive. It is not that easy. The Prime Minister may be thinking of something like that. He is a wise man. He has been running the country for a long time. How much money will the government give even if we are awarded a subsidy? It will be a lot of money. Because now everything is closed. Nothing happens except the food business. They are not working properly.
Bangladesh: Industries and businesses that have repaid their loans on a regular basis are demanding new loans to help them get through the recession. How ready are you in this regard?
Nazrul Islam Majumder: Of course, they have to repay the loan and will continue to get it. Those good entrepreneurs who have a reputation at home and abroad can’t pay the fees now. This is normal. However, if the situation is normal, business will improve again. New loans must be repaid. The bank does not exchange money! Those who are good entrepreneurs are now in trouble. If the situation is good, his condition will be better in the future. We will go to them with a loan. This will not be a problem.
Bangladesh: The loan installment was postponed until June. Bangladesh Bank has said that no one should be a new defaulter until June. But traders have demanded that it be extended until December. What do you think about this? There is no chance that the epidemic will stop in June.
Nazrul Islam Majumder: That is a very logical statement. Fair and timely. Because there is no guarantee that this coronavirus will end in June. Our patients are increasing day by day. Mira is going to die, she doesn’t stop anywhere in China, Italy or the United States. But it started there a long time ago. As a result, we have told the finance minister that the issue of delinquent loans should increase until December. Now no merchant can pay. There is no guarantee that they can pay even if they go in December. As a result, it should be until December. Otherwise, the bank’s balance will be negative. This will increase the default debt. So it is very realistic to extend it to December. If defaulted loans increase, banks will go bankrupt. This will lower the rating of the country’s economy. Then foreign banks will say that their LC business cannot be opened. The World Bank, IMF will speak. They will say that his condition is bad. It must be done
Bangladesh: The incentive package announced by the Prime Minister to continue industrial production and maintain business continuity has been widely praised at home and abroad. How do you think this package is being used?
Nazrul Islam Majumder: It is very realistic. I have said before that the Prime Minister is a very wise man. He also told how the money would be distributed. It is very useful for the country, for the people of the country. He has kindly said that money from wages will go to workers through development or mobile or rocket banking. Workers will get it. There is no possibility of taking the owners. I think it is a very good method. If someone (a merchant) has a purpose, they will not be able to take the money. It will go directly to the workers. And the rest will be given by the bank. None of the defaulters will yield.
Bangladesh: Those who have already wasted billions of rupees by defaulting on bank loans have been asked to suspend their bank loans forever in this nation’s crisis.
Nazrul Islam Majumder: The finance minister has informed us that those who have not returned the money for a long time are becoming an asset management company. They will never get a loan. Instead, they will raise money by selling the assets they have. I want debtors to be severely punished. Players will not obtain this benefit in any way. Even if those who have not returned the money for a long time are hanged, the money will not come. But there must be a system of punishment. It is not about giving you a new loan. That person must be declared bankrupt by passing a bankruptcy law. We must be careful with this. Those whose CIB report is bad will never get money. No MDE will dare to pay them. Who has the courage to pay the defaulters again?
Bangladesh: If the banks themselves can launch special initiatives or credit services to deal with the damage caused by this epidemic, it will accelerate the economy.
Nazrul Islam Majumder: It is not a matter of launching a separate scheme to deal with this epidemic. Private banks will launch new schemes! It is not. But we will go with the money of the good merchants. Those who are good entrepreneurs will always get loans. It will happen automatically. However, in times of disaster, we can help the government through CSR. This is what we do all the time. I gave it again. Giving for the poor. The Prime Minister is giving. We are watching. That is what we are doing.
Bangladesh: Can the central bank and government, as well as BAB, take special measures to reduce the bank’s delinquent loans?
Nazrul Islam Majumder: Debt reduction depends on the business. It will decrease when the business starts. A businessman has become a defaulter, if his business is good, he can become a regular again. If you think someone has defaulted on a small loan, we try to save it by checking and solving it. They have to cooperate.
Bangladesh: What steps can be taken to ensure that beneficial owners receive the advertised incentives?
Nazrul Islam Majumder: Only true victims will reap this benefit here. There is no possibility of cheating here. The Prime Minister himself is monitoring him. As a result, I don’t see any possibility of corruption or irregularities here.
Bangladesh: Do you think incentives can be delivered without political pressure?
Nazrul Islam Majumder: I don’t do politics myself. It would not be correct for me to say that. However, it should not be seen politically at this time. Loans are not made judging by which party. It is an incentive for everyone, of course. Political pressure will not come here in any way. Because it is the Prime Minister himself who takes care of that. And he is the guardian of the people. You have to think about everyone’s words. He will speak for everyone. That is normal
Thank you from the banglanews family.
Nazrul Islam Majumder: Thanks also
Read more >> Exim Bank has financed more than 500 garment factories.
Bangladesh time: 1410 hours, May 3, 2020
SE / TA
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