3-4 leasing companies’ loans under investigation: Mustafa   

Staff Correspondent | Published: 01:11, Aug 15,2019

 
 

Finance minister AHM Mustafa Kamal said Wednesday that the government suspected that the loans extended by three or four leasing companies had been misused.

He told reporters emerging from the Planning Commission review meeting on leasing companies, he had chaired.

The meeting was convened more than month after the government had on July 8, directed the Bangladesh Bank to liquidate People’s Leasing and Financial Services.

Without naming the suspected leasing companies Mustafa Kamal said they would decide the fate of the suspected leasing companies after the probes were over.

He said that separate benches would be created in the Supreme Court to deal only with writ matters relating to loan recovery cases.

He also said that chairmen and managing directors of the leasing companies who attended the meeting said that loan recovery was hampered due to writ petitions filed by errant borrowers.

He reiterated that they would make a provision so that a certain amount of loan to be paid back for filing writ by the aggrieved borrowers.

Mustafa Kamal assured the leasing companies that loopholes in existing laws would be scotched.

High officials of the Bangladesh Bank, Financial Institutions Division and Finance Division attended the meeting.

An official of the FID said Mustafa Kamal rejected leasing companies proposal to make the government the guarantor  for the depositors.

He did not specify any measures against the demand by some leasing companies’ operators including chairman of the Lankan Alliance Finance Jowher Rizvi to liquidate the leasing companies that failed to pay back depositers’ money, said officials.

Later replying to  questions, Mustafa Kamal said that there had been slow progress in creating a commission for the banks due pending case on ‘exit policy’ for rescheduling non-performing loans.

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