Debt cancellation going to be free from defaulters

The public and private banks of the country are constantly writing off the balance sheets to free them from the curse of defaulting loans. This special process is being followed with the hope of realizing a lot.

In 2020, the defaulted debt of Tk 6,590 crore was eliminated from the balance sheet, which is almost two and a half times more than the previous year (2019). The amount of bank liquidation in 2019 was Tk 2,597 crore. In contrast (from abolished) the recovery rate was below one percent.

The removal of defaulted loans from the balance sheet, which has been in the banking system for a long time, is called ‘debt cancellation’. Such concessions are taken to show less defaulted loans as the core of the bank.

Sunbd/NJ