Bangladesh Bank Governor Ahsan H Mansur has announced plans to swiftly identify major loan defaulters and sell their assets within the country to recover funds.
The announcement came after a bankers’ meeting at the central bank headquarters on Wednesday.
According to central bank data released on Tuesday, the country’s default loans have surpassed a record Tk 2 trillion.
The financial system is under pressure due to the large amount of loan money not being repaid.
Governor Mansur outlined two primary strategies for recovering the embezzled money.
“We will first attempt to recover funds from domestic sources, Mansur said.
“Afterwards, we will focus on retrieving funds illicitly transferred outside the country. We expect to achieve some success.”
He also announced the formation of a task force to restore the banking sector.
Governor Mansur said, “Efforts will be made to quickly identify major defaulters and recover their assets within the country.”
The governor also said experts from the United States, the United Kingdom, and internationally recognised individuals will visit the country to help recover the laundered money.
“We will take all legal measures internationally to recover the money. We have already discussed this with the World Bank, the governments of the United States, and the United Kingdom,” he added.
Mansur said, “I will not harbour high hopes regarding the return of the funds, but we will work diligently. We will strive to recover all the money, he said.
“However, I cannot predict how much we will succeed. Restoring the banking sector will require several years of effort.”
Mansur also revealed that a large amount of the embezzled money was transferred to the UK, the US, and Dubai.
“In the UK alone, information has been found on 500-600 properties belonging to one person,” he said.
Mansur said despite changes in some bank boards after the power transition, the management remains largely the same.
“Changes will also occur in management. These banks will be audited, and decisions will be made about their future, including whether they will operate independently or merge with others.
“Smaller banks might face liquidation.“
Half of the funds in Islami banking have disappeared. It will take 1-2 years to repair these banks, he added.
