T here are more that 300,000 loan defaulters in various banks and financial institutions across Bangladesh, Finance Minister AHM Mustafa Kamal has said. As of October 2020, there were 334,982 loan defaulters across the country, according to the Finance Minister of Bangladesh Mr. AHM Mustafa Kamal in response to a question in the parliament on January 25th, 2021, reports the daily Prothomalo.

In response to another question, the finance minister reported revenue collection of BDT 108,471 crore or ca. EUR 10.64 for the fiscal year 2020-21 (until 30th June 2020) as of December 2020 against the target amount of BDT 330,000 crore or ca. EUR 32.35 billion scoring the revenue collection ration to target at 32.87%.

He further told the parliament about decrease of non-performing loans (NPLs) by BDT 17,737 crore, or ca. EUR 1.74 billion. The outstanding non-performing loans (NPLs) as of September 2020, stood at BDT 94,440.47 crore or EUR 9.26 billion, according the the central bank data, which the minister made reference to.

On March 1, 2019, the minister told the parliament that the number of loan defaulters in the country was 2,66,118 as of December 2018.

The latest number  revealed by the finance minister on Monday shows that the number loan defaulters in the country increased by over 68,000 in 22 months, which well may have been caused by relaxed rules, according to the minister.

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Mr. Kauser Bhuiyan is a former EU diplomat and Wall-Street professional who gained more than two decades of professional experience at Accenture, Bloomberg, European Commission and Stein & Partners. He learned professional skills in the areas of Change Management Consulting, International Financial Market, Economic Co-operation and Sustainability Advisory services in Frankfurt, Zurich, London, New York, Brussels, Islamabad and Dhaka. Mr. Bhuiyan can be reached at to[at]bangladeshinside.com
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