Letter to all banks to know where the incentive money is

Senior Reporter: Last year, small and large businesses took about Rs 45,000 crore in incentive loans from banks to help the economy recover from the Corona crisis, with the government subsidizing half of the total interest. About a year after giving the loan, Bangladesh Bank has taken initiative to check the use of these loans.

For this, a letter has been sent to the chief executive of the banks asking for information about who took the loan and where the loan was used. The central bank has even warned to take strict action against the concerned banks and borrowers if the incentive money is not received by the victims.

On Monday, Bangladesh Bank also directed to ensure proper utilization of loans provided under the incentive package. Bank officials said the banks had taken interest subsidy money by showing information that customers had taken loans. So Bangladesh Bank has decided whether the loan has gone to the right customer. Then we will see where the customer has used the loan money. Because the loan is supposed to be used only as working capital.

Sirajul Islam, executive director and spokesperson of Bangladesh Bank, said a letter had been sent to the banks asking for information. After receiving the information, it will be scrutinized by Bangladesh Bank. The central bank will look into who received the loan money and for what purpose.

“We understand that the incentive loan money has not been used properly,” said several concerned central bank officials. Many have used the loan for the right purpose. That is why a letter has been sent to find out the real information.

In the letter given by Bangladesh Bank, it has been asked to send the details of the loan disbursed for the financial year 2020-21 by 15th August. On the issue of proper use of incentive loans during the announcement of the monetary policy for the fiscal year 2021-22 on Thursday, Governor Fazle Kabir said, Done.

Banks have already been instructed to increase their vigilance and take precautionary measures to ensure that the money given in the incentive packages is not used for any other purpose. Besides, initiatives are being taken to increase financial intelligence activities through BFIU to prevent corruption in the financial sector and money laundering abroad, said Fazle Kabir.

Incidentally, the banks disbursed about Tk 30,000 crore incentive loans at 4.5 per cent interest last year to help traders and industrial entrepreneurs in the industrial and service sectors affected by the Corona. And small and medium sector traders are given 15 thousand crore rupees at 4 percent interest. The interest rate on these loans was 9 percent. The government has given the rest of the interest as subsidy.

Preliminary investigations have revealed that many people have spent in different sectors with low interest loans from incentive funds. Some have repaid loans from other banks with government funds to cover losses.

Source: Daily StockBangladesh by www.dailystockbangladesh.com.

*The article has been translated based on the content of Daily StockBangladesh by www.dailystockbangladesh.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!